OpenAI targets $150B valuation in new funding round

OpenAI, led by CEO Sam Altman, is reportedly in advanced discussions to secure a significant new funding round that could elevate its valuation to $150 billion.

This potential funding round is expected to be spearheaded by Thrive Capital, which plans to contribute around $1 billion.

The round may also involve notable tech giants like Microsoft, Nvidia, and Apple, signaling strong market confidence in OpenAI’s role in the expanding artificial intelligence (AI) sector.

According to a Bloomberg report, this new funding round could raise $6.5 billion, significantly boosting OpenAI’s valuation from the $86 billion it reached earlier this year.

Thrive Capital, already an investor in OpenAI, is expected to lead the round, underlining its commitment to AI innovation.

Microsoft, OpenAI’s largest backer, which previously invested $10 billion in the company in 2023, is also considering further participation.

Nvidia, known for its AI chips, and Apple are reportedly in talks to join, reflecting the growing interest from major tech companies in AI advancements.

In addition to seeking equity investment, OpenAI is also reportedly looking for $5 billion in debt financing through a revolving credit facility.

This would provide the company with greater financial flexibility to manage its operations and continue its aggressive expansion.

Banks are currently in discussions to provide this line of credit.

OpenAI has already spent heavily on AI training, infrastructure, and staffing, with expenditures totaling $8.5 billion to date.

This additional capital is seen as critical for sustaining the company’s growth and maintaining its competitive edge in the AI industry.