OpenAI, the AI powerhouse behind ChatGPT, is raising a new round of funding that could value the company at over $100 billion, according to sources. Investors have already shown their eagerness to back the AI leader, with secondary market transactions indicating valuations as high as $143 billion.
The new funding round, potentially led by Thrive Capital with a $1 billion investment, could also see participation from tech giants like Microsoft, Nvidia, and Apple. This marks a significant leap from OpenAI’s recent $86 billion valuation in a September secondary sale.
Despite its rapid rise, OpenAI’s revenue has also skyrocketed, with the company projected to hit $2 billion in annual recurring revenue by the end of the year. As AI continues to reshape industries, investors are eager to be part of OpenAI’s journey, with some speculating that the company could one day be worth a trillion dollars.
OpenAI’s growing demand for capital is driven by its need for greater computing power and other operational expenses as it works to maintain its lead in the competitive AI landscape. As part of the upcoming funding round, OpenAI may offer a tender for employees to sell shares, further underscoring the high demand for a stake in the company.
The AI space is heating up, with competitors like Google, Meta, and Amazon also making significant strides in the field. However, OpenAI’s first-mover advantage with ChatGPT and its continued innovation keep it at the forefront of the AI revolution. As investors vie for a piece of the action, OpenAI’s story is one of rapid growth, massive potential, and a valuation that reflects its status as a key player in the future of technology.
