OpenAI Seeks New Funding at $100B+ Valuation
Key Takeaway
OpenAI is in discussions to raise substantial new funding at a valuation of $100 billion or more, which would make it one of the world's most valuable private startups.
Summary
- OpenAI is in early talks to raise a new round of funding at a $100 billion+ valuation. This would make it the 2nd most valuable US startup after SpaceX.
- The funding talks are still preliminary - terms, valuation, and timing not finalized yet.
- OpenAI is also in separate discussions to raise $8-10 billion from Abu Dhabi's G42 for a new chips venture called Tigris.
- Goal of Tigris is to produce AI chips that can compete with Nvidia's.
- OpenAI had leadership turmoil in November when its board suddenly fired then reinstated CEO Sam Altman within days.
- The new funding rounds signal OpenAI is refocusing on products after the leadership tumult.
- OpenAI became Silicon Valley's hottest startup in 2022 after launching ChatGPT.
- ChatGPT kicked off an AI frenzy and new appreciation for AI's promise.
- Microsoft, Amazon, Google, Salesforce, and others have invested billions in AI startups in response.
- OpenAI also recently allowed employees to sell shares in a $86B tender offer led by Thrive Capital.
- So OpenAI's valuation has skyrocketed in the past year due to the AI hype it initiated with ChatGPT.