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OpenAI in Talks to Secure Funding at $100 Billion Valuation
OpenAI, the renowned artificial intelligence company, is currently engaged in discussions to raise a new round of funding at a valuation of $100 billion or more, according to Bloomberg News.
Citing sources familiar with the matter, the report states that the terms, valuation and timing of the funding round have not yet been finalised and are subject to change.
In addition to seeking funding, OpenAI has also been in talks with G42, a company based in Abu Dhabi, to explore a potential chip venture. However, it remains unclear whether the chip venture and the wider funding efforts are directly related. The report suggests that OpenAI has discussed the possibility of raising between $8 billion and $10 billion from G42.
OpenAI is set to complete a separate tender offer led by Thrive Capital in early January. This offer would allow employees to sell shares at a valuation of $86 billion, as reported by Bloomberg News. It is worth noting that Microsoft has already committed to investing over $10 billion in OpenAI, a move that has significantly contributed to the company's rise in valuation.
The popularity of OpenAI's generative artificial intelligence technology, particularly its chatbot called ChatGPT, has played a significant role in the company's meteoric rise. ChatGPT is capable of generating human-like responses based on user prompts and its release in November 2022 sparked a craze in the AI community.
Despite the ongoing discussions and potential funding opportunities, both Microsoft and OpenAI have declined to comment on the matter when approached by Reuters.
OpenAI's journey has not been without its share of challenges. In November, the company made headlines when its CEO, Sam Altman, was abruptly ousted without a detailed explanation. This move raised concerns among investors and employees, but Altman was reinstated four days later with the promise of a new board.
As OpenAI continues to explore funding options and expand its technological capabilities, the company remains at the forefront of the AI industry, driving innovation and pushing the boundaries of what is possible.
OpenAI is in talks to raise new funding at a valuation of $100 billion or more.
The terms and timing of the funding round have not been finalised and may change.
OpenAI has also discussed a potential chip venture with G42, seeking to raise between $8 billion and $10 billion.
Source: REUTERS