OpenAI hopes for $100 billion valuation in new funding round

OpenAI, the creator of ChatGPT, is reportedly in early talks to secure a new funding round that could value the artificial intelligence company at or above $100 billion, according to insiders familiar with the matter. Investors involved in the potential fundraising have engaged in preliminary discussions, though details such as terms and timing remain subject to finalization.

If the funding proceeds as anticipated, OpenAI would become the second-most valuable startup in the U.S., trailing only Elon Musk’s Space Exploration Technologies, as per data from CBInsights.

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A separate tender offer set for early January will allow OpenAI employees to sell shares at an $86 billion valuation. Thrive Capital is leading this effort, which has garnered more demand than available shares.

OpenAI’s rise in valuation began a year ago with the introduction of ChatGPT, a chatbot acclaimed for its human-like responses. The company secured $13 billion in funding to date, including investments from Microsoft, reshaping the AI landscape within months.

While OpenAI declined to comment, discussions also indicate potential funding for a new chip venture with Abu Dhabi-based G42. The startup, led by CEO Sam Altman, aims to produce semiconductors competing with Nvidia’s dominance in the AI chip market.

Despite recent leadership uncertainties, OpenAI signals a renewed focus on its products after a brief period of upheaval. The company’s influence has sparked a broader AI investment trend, with major players like Amazon, Alphabet, Salesforce, and Nvidia pouring billions into the industry.