OpenAI intends to raise a new round of funding at a valuation of no less than $100 billion, and talks are in the early stages, according to people familiar with the matter. The ChatGPT developer tops the global startup value rankings, and the deal will further cement its position.
People familiar with the matter, who spoke on condition of anonymity because of the non-public discussions, said investors who may have participated in the round had participated in preliminary discussions. According to people familiar with the matter, details such as the terms, valuation and timing of this round of financing have not yet been finalized, and there is still a possibility of adjustment.
If this funding round goes ahead as planned, the AI darling will be the second-most valuable startup in the U.S., behind Elon Musk's SpaceX, according to data from Cbinsights.
OpenAI declined to comment.
OpenAI has also held discussions with Abu Dhabi G42 to raise funds for a new chip joint venture, according to people familiar with the matter.
The startup has already discussed raising $8 billion to $10 billion from the G42, according to one of the people familiar with the matter. All requested anonymity for talking about confidential information. It's unclear if there's a link between the chip joint venture and the company's broader financing plans.
OpenAI CEO Sam Altman has been seeking funding for a chip manufacturing project codenamed "Tigris." The goal of the project is to produce chips that can compete with Nvidia.
In October, G42 announced a partnership with OpenAI to provide cutting-edge AI solutions to the UAE and regional markets. But no financial details were provided.
After OpenAI's board abruptly fired Altman earlier last month, the company's future looked uncertain. At the time, some investors considered writing down their holdings to zero. But after five days of turmoil, Altman was recalled. The company's goal is to signal to customers that it will refocus on its products after the turmoil.
This article is sourced from: the financial world.