OpenAI is reportedly finalizing an investment round exceeding $100 billion, which could boost its valuation beyond $850 billion, Bloomberg reports, citing sources familiar with the matter.
This funding round occurs as the creator of ChatGPT expends significant capital while striving for profitability. In a bid to generate more revenue, OpenAI has initiated tests of advertisements within ChatGPT for its free users, a move that could either increase earnings or deter its user base.
Investors seemingly perceive this as a worthwhile endeavor, given the valuation has risen $20 billion above the initially expected $830 billion. Bloomberg’s source indicates that the company’s pre-money valuation will stay at $730 billion.
The initial segments of this funding are reportedly sourced from established players such as Amazon (considering an investment of up to $50 billion), SoftBank (preparing for $30 billion), Nvidia (nearing a $20 billion investment), and Microsoft. Venture capital firms and sovereign wealth funds are anticipated to finalize their contributions later, which could further increase the total capital raised.
TechCrunch has contacted OpenAI seeking a statement.