Report: OpenAI Valuation Set at $100 Billion
By Matt Swayne · · 2 min read
Insider Brief
- OpenAI is in preliminary discussions to raise new funding at a valuation possibly exceeding $100 billion, as reported by Bloomberg News and cited by Reuters.
- The company is also exploring a separate chip venture with Abu Dhabi-based G42, aiming to raise between $8 billion and $10 billion.
- OpenAI, known for its ChatGPT chatbot, has seen a substantial increase in valuation, with a pending tender offer led by Thrive Capital valuing it at $86 billion.
OpenAI, the pioneering force behind the AI revolution with its ChatGPT chatbot, is reportedly in the early stages of negotiating a new round of funding that could value the company at over $100 billion, as per a Bloomberg News report cited by Reuters. This development highlights the company’s rapid growth, driven by the widespread popularity of ChatGPT, an AI that can produce human-like responses to user prompts.
The specifics of this funding round, including the exact valuation and timeline, are still under discussion and may be subject to change, according to reports. In addition to this, OpenAI is exploring a separate initiative with Abu Dhabi’s G42 for a new chip venture, although it remains unclear if this venture is directly linked to the broader funding efforts. OpenAI and G42 are considering a potential investment of $8 to $10 billion for this venture.
OpenAI, a San Francisco-based company, is nearing the completion of another financial deal led by Thrive Capital, set for early January, the news organizations state. This tender offer, which allows employees to sell shares, values OpenAI at approximately $86 billion.
Microsoft, a key investor in OpenAI with a commitment exceeding $10 billion, has significantly contributed to the company’s growth. This investment followed the release of ChatGPT in November 2022, a major catalyst in the generative AI boom. Despite these developments, Microsoft has not provided any additional comments when approached by Reuters, and OpenAI has not responded to inquiries.
Industry analysts are watching the valuation surge for OpenAI closely. Previously, the company managed a $300 million share sale at a $30 billion valuation. Additionally, OpenAI CEO Sam Altman, who survived a firing attempt, announced in late November that Microsoft would assume a non-voting, observer role on OpenAI’s board, marking a significant step in their ongoing partnership.
