ChatGPT creator OpenAI is reportedly in discussions to secure a significant new funding round, led by previous investor Thrive Capital. The round is expected to value the AI startup at more than $100 billion, a substantial increase from its previous $86 billion valuation. Thrive Capital is poised to contribute around $1 billion, with other participants including Microsoft, according to reports from The Wall Street Journal.
Microsoft and Other Key Investors Expected to Participate
Microsoft, which invested nearly $10 billion in OpenAI in January 2023, is also expected to join this new funding round. Other existing investors, such as Khosla Ventures, Infosys, and Y Combinator, may also participate, although specifics on additional contributors remain unclear.
Financial Pressures and Strategic Investments
The anticipated fundraising comes at a critical time for OpenAI. While the company’s annualized revenue surpassed $3.4 billion earlier this year, reports suggest that OpenAI is on track to lose nearly $5 billion by the end of the year. The company has already spent $8.5 billion on AI training and staffing, highlighting the immense financial pressures it faces as it scales its AI capabilities.
This latest infusion of capital is expected to be OpenAI’s largest since its major investment from Microsoft, underscoring the continued confidence in the company’s potential despite its heavy spending and financial losses.
