OpenAI funding on track to top $126 billion with latest round
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The record-breaking financing deal will give the ChatGPT maker additional capital to build out its AI tools.
PHOTO: REUTERS
San Francisco – OpenAI is close to finalising the first phase of a new funding round that is likely to bring in more than US$100 billion (S$126.8 billion), according to people familiar with the matter.
The record-breaking financing deal would give the ChatGPT maker additional capital to build out its artificial intelligence tools.
As OpenAI prepares to invest trillions in infrastructure, its overall valuation, including the eventual funding, could exceed US$850 billion, according to some of the sources. That is higher than the US$830 billion initially expected.
The company’s pre-money value will remain at US$730 billion, said one source.
The first portion of the funding round will largely come from strategic investors, including Amazon.com, SoftBank Group, Nvidia and Microsoft, the sources said. If they invest near the high end of the discussed ranges, those commitments will near US$100 billion. Allocations are expected to be finalised by the end of February, some of the sources added.
The next phase, involving venture capital firms, sovereign wealth funds and other financial investors, is expected to close later and could increase the total fund-raising amount substantially, some of the sources said.
The deal is not yet finalised, and its details could still change.
Representatives for OpenAI, Amazon, Nvidia, SoftBank and Microsoft either declined to comment or did not immediately respond to requests for comment.
In connection with the upcoming deal, Amazon is expected to invest up to US$50 billion, SoftBank is set to invest as much as US$30 billion, and Nvidia has discussed putting in US$20 billion, Bloomberg previously reported.
The money from corporate investors is expected to come in several tranches, or instalments, over the course of the current year, some of the sources said.
As part of its partnership with Amazon, OpenAI is expected to expand its use of Amazon’s chips and cloud computing services, according to one source. BLOOMBERG
