San Francisco’s tech giant, OpenAI, is currently engaged in initial talks to raise new funding, eyeing a valuation potentially exceeding $100 billion. However, exact details concerning the terms, valuation, and exact timeline for this funding endeavor are still in flux, as outlined in the Bloomberg report.
Additionally, OpenAI has been engaged in discussions about funding a new chip project alongside G42, an entity based in Abu Dhabi. However, the report does not firmly establish a direct link between these chip venture talks and the broader funding dialogues at OpenAI. It details conversations aiming to secure an investment ranging between $8 billion to $10 billion from G42.
Separately, OpenAI is anticipated to finalize a tender offer led by Thrive Capital by early January. This step aims to allow the company’s employees to sell shares, envisioning a valuation of $86 billion.
Microsoft has already committed to an investment exceeding $10 billion in OpenAI. This pledge comes subsequent to OpenAI’s pivotal role in advancing generative artificial intelligence, particularly with the launch of ChatGPT in November 2022. ChatGPT, an AI system capable of crafting human-like responses based on user input, significantly bolstered the profile of AI technology, propelling OpenAI’s valuation to unprecedented levels. Previously, the company raised $300 million through a share sale, valuing the firm at $30 billion.
Noteworthy in late November, OpenAI underwent a change in leadership involving CEO Sam Altman, who was suddenly removed on November 17 without a detailed explanation, sparking concerns among investors and staff. However, Altman was reinstated just four days later, accompanied by assurances of a revamped board structure. Microsoft’s involvement in OpenAI’s board will be in a non-voting, observer capacity, as revealed by Altman during the developments in November.