OpenAI, the renowned artificial intelligence powerhouse headquartered in San Francisco, is reportedly in the early stages of discussions to secure a new round of funding, with an ambitious valuation goal surpassing $100 billion. The details of this potential funding, including terms and precise timing, are still in flux and subject to adjustments, according to a Bloomberg report.
In addition to the broader funding discussions, OpenAI is said to be in talks with G42, based in Abu Dhabi, regarding funding for a new chip project. While the connection between the chip venture discussions and the overarching funding initiative is not explicitly confirmed, there are discussions about securing an investment ranging from $8 billion to $10 billion from G42.
Separately, OpenAI is anticipated to conclude a tender offer led by Thrive Capital by early January. This strategic move is intended to allow the company’s employees to sell shares, with an anticipated valuation of $86 billion.
Microsoft has already pledged a substantial investment exceeding $10 billion in OpenAI. This commitment comes on the heels of OpenAI’s significant contribution to the field of generative artificial intelligence with the launch of ChatGPT in November 2022. ChatGPT, a conversational AI system capable of generating human-like responses based on user input, garnered widespread attention, propelling OpenAI’s valuation to unprecedented heights. Previously, the company conducted a share sale amounting to $300 million, valuing the company at $30 billion.
In a notable development in late November, OpenAI underwent a leadership shuffle involving the removal and subsequent reinstatement of CEO Sam Altman. While Altman’s sudden removal on November 17 raised concerns among investors and staff, he was reinstated just four days later, accompanied by assurances of a revamped board structure. Microsoft’s role on OpenAI’s board will be in a non-voting, observer capacity, as disclosed during the November leadership changes.
