OpenAI in Talks for Funding Round Valuing It Above $100 Billion

San Francisco-based artificial intelligence pioneer OpenAI is reportedly in discussions to raise several billion dollars in a new funding round that would catapult the company’s valuation above $100 billion. This marks a significant leap from its previous valuation of $86 billion, highlighting the growing influence and success of the AI industry.

Venture-capital firm Thrive Capital is leading the investment, expected to contribute approximately $1 billion, according to sources familiar with the matter. Microsoft, already a major backer of OpenAI, is also expected to participate in the funding round.

This latest infusion of capital would be the largest external investment in OpenAI since Microsoft’s substantial $10 billion contribution in January 2023. The new funding underscores the fierce competition in Silicon Valley to dominate the burgeoning AI sector, which many believe will be a key driver of future economic growth.

“OpenAI is in talks to raise several billion dollars in a new funding round that would value the startup behind ChatGPT above $100 billion. Venture-capital firm Thrive Capital is leading the round and will invest about $1 billion, according to people familiar with the matter. Microsoft is also expected to put in money. This would be the largest infusion of outside capital into OpenAI since Microsoft’s $10 billion investment in January 2023.

The San Francisco-based AI company, co-founded by Sam Altman in 2015, has seen its valuation soar thanks to the success of ChatGPT and other innovative products. Thrive Capital, which has a strong relationship with OpenAI, has been a consistent supporter, having already invested hundreds of millions of dollars into the startup over the past year.

The ongoing funding discussions highlight the intense competition in Silicon Valley to dominate the AI industry, which is increasingly seen as a crucial driver of future economic growth.”

OpenAI, co-founded by Sam Altman in 2015, has been at the forefront of AI innovation, with its flagship product, ChatGPT, playing a pivotal role in bringing AI into the mainstream. The chatbot’s ability to generate human-like responses has fueled its popularity and significantly contributed to OpenAI’s rapid valuation growth.

Thrive Capital, founded by Josh Kushner, has a strong relationship with OpenAI and has invested hundreds of millions of dollars in the company since last year. The firm’s continued support reflects confidence in OpenAI’s leadership and its potential to further revolutionize the AI industry with upcoming products like the anticipated ‘Strawberry,’ set to launch this fall.

While the broader market has seen some cooling in AI investments, OpenAI’s continued expansion and innovation suggest that it remains a key player in the ongoing AI arms race. As discussions continue, the company’s valuation could further solidify its position as a leader in the tech industry.