OpenAI seeks $100B in funding, eyeing $830B valuation
What's the story
OpenAI, the company behind ChatGPT, is reportedly looking to raise up to $100 billion in a funding round. If successful, this could value the company at as much as $830 billion. The Wall Street Journal reported the news, citing anonymous sources, following initial details reported by The Information. The fundraising effort comes amid a cooling sentiment around artificial intelligence (AI) investments and rising competition from rivals like Anthropic and Google.
Financial strategy
Funding round to support global AI development
The proposed funding round is expected to help OpenAI fund its ambitious growth plans and global AI development efforts. The company is said to be considering sovereign wealth funds as potential investors in this round, according to The Information. This comes as OpenAI continues its year-end dealmaking spree, including a $1 billion investment from Disney.
Market hurdles
OpenAI's financial needs and market challenges
OpenAI's financial needs are driven by the need to build its AI models and stay competitive in a fast-evolving market. The company has faced criticism over the scale of its computing deals. Despite these challenges, OpenAI has managed to secure funding from various investors, including UAE-based MGX. However, partners like Oracle and CoreWeave have seen their market values decline amid skepticism over their ambitious data-center expansion plans.