US EditionOpenAI’s Wild, Wild $850 Billion Valuation
OpenAI plans to raise $100 billion to support trillion-dollar commitments and cover rising compute costs amid competition and possible IPO, sources say.
- On Thursday, The Wall Street Journal reported OpenAI is in talks to raise up to $100 billion in a deal valuing the ChatGPT maker at up to $830 billion, with no immediate comment from OpenAI.
- To cover rising costs, OpenAI seeks new capital to fund commitments and growing compute expenses, aiming to finish the raise by the end of the calendar first quarter next year and may ask sovereign wealth funds to invest.
- PitchBook data shows OpenAI has more than $64 billion on hand and was most recently valued at about $500 billion in a secondary transaction, while reports say it courted Amazon for a $10 billion investment.
- Competition from Anthropic and Google is pressuring OpenAI to accelerate model releases and expand tooling, while memory chip shortages and high inferencing costs strain finances amid cooled investor sentiment.
- Valuation estimates vary across outlets, with The Information citing $750 billion and other reports suggesting up to $850 billion, while OpenAI plans an IPO to raise tens of billions and projects profitability by 2030.
11 Articles
11 Articles
OpenAI calls back to investors’ doors. Sam Altman’s start-up is in negotiations to attract up to $100 billion (more than €85.3 billion), with which to continue to boost its operations, and to stop speculation about its growing financial needs. The transaction can cause even greater warming in the world of artificial intelligence (AI), in which investors fear a new bubble. A scenario that has already led to strong stock exchange punishment in com…
OpenAI’s Wild, Wild $850 Billion Valuation
OpenAI will cobble together a clutch of investors to raise as much as $100 billion. Some of that money may come from sovereign wealth funds, which could include one run by the United Arab Emirates. The deal could set OpenAI’s valuation at $850 billion, a massive amount for a company that says it will not be profitable until 2030. OpenAI will also need as much as hundreds of billions of dollars to build data centers, and probably will need more f…
OpenAI plans to raise up to $100 billion to fund ambitious growth plans in the artificial intelligence market, which has recently slowed after a boom.
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