OpenAI is currently in negotiations to secure an investment that could propel its valuation to $150bn, reports Bloomberg, citing sources.
Sources, who requested anonymity, have revealed that the AI-focused startup is in talks to raise $6.5bn from investors.
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Raising funds at a $150bn valuation represents a substantial increase from its previous $86bn valuation earlier in 2024.
OpenAI is also discussing a $5bn debt raise through a revolving credit facility with banks.
The terms of these discussions are still fluid and may be subject to change.
OpenAI refrained from commenting on the ongoing negotiations, the publication said.
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By GlobalDataThe anticipated funding round is expected to be spearheaded by Thrive Capital, with OpenAI’s largest investor, Microsoft, also set to contribute.
Additionally, Apple and NVIDIA have expressed interest in investing.
This move follows a trend among tech startups to secure revolving credit facilities from Wall Street banks, a strategy previously employed by companies such as Meta Platforms, Alibaba Group, Uber Technologies, and DoorDash.
OpenAI, established in 2015, is said to be a driving force behind the surge in AI technology, particularly with the launch of its user-friendly chatbot, ChatGPT, in 2022.
The company’s products, capable of creating realistic images and text, have garnered significant consumer and investor interest.
Since inception, the company has undergone substantial changes, including the temporary removal of CEO Sam Altman and a restructuring of its board and executive team.
In a recent memo, OpenAI CFO Sarah Friar informed employees that the new financing would support computing power and operational costs and mentioned plans for a tender offer to allow employee share sales later in the year.
OpenAI has revealed plans to launch SearchGPT, a new search engine prototype currently being tested by a select group of users.
Expected to be integrated with the ChatGPT chatbot, SearchGPT introduces a more conversational method for retrieving online information and could potentially disrupt Google‘s dominance in the search engine market.
