OpenAI Rumored to Be Finalizing a New Investment Round at a Valuation Exceeding $100 Billion

The entity behind ChatGPT, OpenAI, is purportedly engaging in negotiations to secure a substantial financial boost, with Thrive Capital, a prior investor, leading the charge at a valuation surpassing $100 billion. This marks a significant leap from its last valuation of $86 billion, setting a new record valuation for an AI startup.

It is said that Thrive Capital will contribute about $1 billion of the total amount. Additionally, Microsoft is anticipated to play a role in this financial round, as mentioned by the WSJ. The exact list of participants remains uncertain. OpenAI counts Khosla Ventures, Infosys, and Y Combinator among its current financial supporters.

This round of financing is expected to be OpenAI’s largest collection of external funds since Microsoft’s near $10 billion investment in January 2023.

The necessity for this financial injection for OpenAI is evident. According to the WSJ, its annual revenue has already surpassed $3.4 billion earlier in the year. Despite this, The Information suggests OpenAI could face nearly $5 billion in losses by the end of the year, having spent $8.5 billion on AI development and team expansion.