August 29, 2024

OpenAI reportedly in talks to close a new funding round at $100B+ valuation - TechCrunch

TechCrunch

Summary

OpenAI, the creator of ChatGPT, is reportedly negotiating a new funding round at a valuation exceeding $100 billion, significantly higher than its previous $86 billion valuation. Thrive Capital, an existing backer, is expected to contribute around $1 billion, with Microsoft anticipated to participate as well. The funding would represent OpenAI's largest capital infusion since Microsoft's nearly $10 billion investment in January 2023. Despite annualized revenues surpassing $3.4 billion, the company is on track to lose nearly $5 billion by year-end, having already spent $8.5 billion on AI training and staffing.