OpenAI seeking to Raise Capital at a valuation of $100 billion

Bloomberg News reported on December 22 that OpenAI is in early talks to raise a new round of funding at a valuation of at least $100 billion, citing people familiar with the matter. The terms, valuation, and timing of the funding round have not yet been finalised and may change, according to the report.

According to the report, OpenAI has also discussed raising funds for a new chip venture with Abu Dhabi-based G42.

According to the report, it is unclear whether the chip venture and overall company funding are related, and OpenAI has discussed raising between $8 billion and $10 billion from G42. as per the report, OpenAI plans to complete a separate tender offer led by Thrive Capital in early January, allowing employees to sell shares valued at $86 billion.

Microsoft has committed to investing more than $10 billion in OpenAI, which launched ChatGPT in November 2022, kicking off the generative artificial intelligence craze.

When contacted by Reuters, Microsoft stated that it had nothing to share. OpenAI did not respond to a request for comment from Reuters.

ChatGPT, a chatbot that can generate human-like responses based on user prompts, has aided AI's popularity and fueled OpenAI's meteoric rise in valuation. The company previously sold $300 million in shares at a $30 billion valuation.

In late November, OpenAI CEO Sam Altman announced that Microsoft would join the company's board as a non-voting observer.

Altman was fired by OpenAI on November 17 without explanation, raising concerns among investors and employees. Four days later, he was reinstated with the promise of a new board.