OpenAI is close to a deal to raise more than $100 billion at a valuation of more than $850 billion. Bloomberg report, Citing sources familiar with the matter.
The deal comes as the ChatGPT-maker is burning through cash as it moves towards profitability. In this regard, OpenAI has said that it will soon launch Advertisement in Chatgpt For free users, a gamble that could lead to more revenue or cause users to flee the platform.
Investors apparently think it’s worth the risk if they value the company at $20 billion more than the $830 billion initially expected. According to Bloomberg’s source, the pre-money value of the company will be $730 billion.
The first tranche of funding is reportedly coming from the usual suspects: Amazon (already in talks to invest up to $50 billion), SoftBank (is gearing up for $30 billion), Nvidia (close to investment $20 billion), and Microsoft. VC firms and sovereign wealth funds are expected to close later, potentially pushing the total amount raised even higher.
