OpenAI, the artificial intelligence powerhouse behind the popular ChatGPT, is reportedly in discussions to raise funding at a staggering $150 billion valuation, according to a Bloomberg News report on Wednesday. If successful, this move would cement OpenAI's position as one of the largest startups globally.
The company is in talks to raise $6.5 billion from investors, with an additional $5 billion in debt financing through a revolving credit facility provided by banks, Bloomberg reported, citing sources familiar with the matter. This new valuation would represent a 74% jump from the $86 billion valuation OpenAI achieved earlier this year in a tender offer.
OpenAI has yet to respond to media inquiries, and Thrive Capital, which is reportedly leading the funding round, declined to comment.
OpenAI, led by CEO Sam Altman and backed by tech giant Microsoft, has been a driving force in the artificial intelligence space, largely due to the success of its viral chatbot, ChatGPT. This has fueled a resurgence of interest in AI across Silicon Valley and beyond.
On Wednesday, OpenAI was added to Forge Global Holdings' prestigious "Private Magnificent Seven," a list that includes other AI-driven companies. The original Magnificent Seven refers to a group of publicly traded mega-cap companies like Microsoft, Apple, Google-parent Alphabet, and Tesla.
The planned capital injection would enable OpenAI to remain private for a longer period, as many high-profile startups are avoiding the costs and volatility associated with going public. Instead, private equity firms and alternative funds, such as Destiny Tech100 and ARK Venture Fund, are providing capital that allows startups to delay initial public offerings (IPOs).