OpenAI set to raise $6.5 billion at $150 billion valuation – Report 

ChatGPT maker, OpenAI, is reportedly in talks to raise $6.5 billion from investors at a valuation of $150 billion.

According to a Bloomberg report citing people familiar with the situation, the new valuation is significantly higher than the $86 billion valuation from the company’s tender offer earlier this year, and cements its place as one of the most valuable startups in the world.

Per the Bloomberg report, the $150 billion valuation does not include the money being raised. The report indicated that OpenAI is also in talks to raise $5 billion in debt from banks in the form of a revolving credit facility.

The investors 

The funding round is slated to be led by Thrive Capital, Bloomberg previously reported. Microsoft Corp., the company’s largest investor, is also set to participate, and Apple Inc. and Nvidia Corp., have been in talks about investing.

Microsoft has invested over $13 billion in OpenAI, including a $1 billion investment in 2019 and a $10 billion investment in 2023. Part of Microsoft’s investment includes a large amount of Azure cloud credits and limited cash.

• The startup did not comment on the funding talks. The people familiar with the deal noted that the discussions are still ongoing and the numbers could change, according to Bloomberg.

• Founded in 2015, OpenAI has been at the center of the technology industry’s rapid shift toward AI, kicking off an investing frenzy with the 2022 debut of its easy-to-use chatbot, ChatGPT.

• The company’s products, which can generate realistic images and human-sounding text from just a few words of prompting, have captured the attention of both consumers and investors.

What you should know 

The AI industry has seen a surge in investment, driven by the rapid advancements in generative AI technologies like OpenAI’s ChatGPT and Google’s Gemini.

As AI technology continues to evolve, investors are increasingly recognizing the importance of developing systems that are not only powerful but also aligned with human values and safety protocols.

• AI startups are now becoming the most funded startups across the globe as their funding comes mostly in billions of dollars.

• Earlier this month Safe Superintelligence (SSI), a newly established artificial intelligence startup co-founded by Ilya Sutskever, the former chief scientist of OpenAI, raised $1 billion in funding with just a small team of 10 employees.
• According to the AI startup, substantial capital injection will be used to develop AI systems that not only surpass human capabilities but also prioritize safety, a growing concern in the AI community.