Key Points
- OpenAI is reportedly close to a funding round exceeding $100 billion.
- The deal could push the company’s valuation beyond $850 billion.
- Pre‑money valuation is said to stay at $730 billion, $20 billion higher than earlier expectations.
- OpenAI has begun testing ads in the free version of ChatGPT to generate revenue.
- Amazon, SoftBank, Nvidia and Microsoft are identified as early‑stage investors.
- Additional capital may come from venture firms and sovereign wealth funds later in the round.
Funding Overview
OpenAI is said to be on the brink of a financing round that may bring in more than $100 billion, according to Bloomberg sources. The size of the deal could lift the company’s valuation above $850 billion, surpassing earlier expectations. The pre‑money valuation is reported to remain at $730 billion, with investors willing to price the company $20 billion higher than the initial target.
To address its substantial cash consumption, OpenAI has begun testing advertisements within the free version of ChatGPT. This move is intended to generate additional revenue, though it carries the risk of altering user experience.
Investor Participation
The first portions of funding are expected from a group of familiar backers. Amazon is reported to be in talks to invest up to $50 billion, while SoftBank is preparing a $30 billion commitment. Nvidia is close to a $20 billion investment, and Microsoft is also part of the early round. Later phases of the financing may involve venture‑capital firms and sovereign wealth funds, potentially increasing the total amount raised.
The scale of the transaction would position OpenAI among the most heavily funded technology companies, reflecting strong confidence from large‑scale investors in the firm’s AI platform and its growth prospects.
Source: techcrunch.com