OpenAI, the company behind the popular AI tool ChatGPT, is in advanced talks to secure several billion dollars in a new funding round led by Thrive Capital with an investment of around $1bn, that could value the startup at over $100bn, according to a report by the Wall Street Journal.
The report cites unnamed sources familiar with the matter as revealing that as well as VC firm Thrive, significant existing investor Microsoft is also expected to participate in the round which marks the the largest influx of external capital into OpenAI since Microsoft’s $10bn investment in January 2023.
OpenAI was previously valued at $86 billion late last year, following a sale of shares by employees.
Thrive Capital, founded by Josh Kushner 15 years ago, has been a close partner of OpenAI and its CEO, Sam Altman, having already invested several hundred million dollars in the company over the past year.
Details about other potential investors in the funding round have not yet been disclosed.
Recently, some current OpenAI stockholders have been in negotiations to sell their shares at a valuation of $103bn, according to documents reviewed by The Wall Street Journal. New investors are likely to value the company at a similar or higher level, excluding any additional funds raised.
Microsoft, which has invested $13bn in OpenAI since 2019, currently holds a 49% share of the company’s profits. Much of this investment has been recouped as OpenAI uses Microsoft’s Azure cloud platform to host its technology.
Source: Private Equity Wire
Can’t stop reading? Read more
US Pipeline Operator ONEOK Inks Two Deals for $5.9 Billion
US pipeline operator ONEOK Inc. agreed to buy a Permian Basin rival and a controlling stake in...
Blackstone Is Said to Seek A$5.5 Billion Loan for AirTrunk Bid
Private equity firm Blackstone Inc. is in discussions with banks for a five-year loan of about...
CVC in Talks to Invest in $3 Billion Property Manager Odevo
CVC Capital Partners Plc is in talks about a potential investment in residential property manager...