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OpenAI Pursues Potential $100 Billion Valuation in New Funding Talks, Explores Chip Venture with G42

OpenAI Pursues Potential $100 Billion Valuation in New Funding Talks, Explores Chip Venture with G42

Reports indicate that OpenAI is currently exploring the potential for a new funding round, aiming for a valuation of $100 billion or higher, according to sources familiar with the matter cited by Bloomberg News.

Details including the precise terms, valuation, and the timing of this funding round are still being negotiated and may undergo alterations, as outlined in the report.

Additionally, discussions have emerged regarding OpenAI’s intentions to secure funding for a chip-related venture in collaboration with G42, a company based in Abu Dhabi. While the relationship between this chip venture and broader funding remains unclear, discussions suggest a prospective investment ranging from $8 billion to $10 billion from G42.

Separately, OpenAI is reportedly finalizing a tender offer with Thrive Capital, scheduled to conclude in early January. This offer would enable employees to sell shares at an $86 billion valuation, representing an ongoing financial development within the company.

Microsoft’s commitment to invest over $10 billion in OpenAI, which notably sparked the rise of generative artificial intelligence with the launch of ChatGPT in November 2022, has significantly contributed to OpenAI’s recent valuation surge.

Despite inquiries, Microsoft declined to comment on the matter, while OpenAI did not provide a response to Reuters’ request for comment.

ChatGPT, an AI-driven chatbot celebrated for its human-like conversational abilities, has played a pivotal role in elevating OpenAI’s profile and driving its rapid escalation in valuation. Previously, the company executed a $300 million share sale at a $30 billion valuation.

In late November, there were leadership changes at OpenAI, with CEO Sam Altman initially removed without specific reasons given, causing concern among investors and staff. He was reinstated four days later, with assurances of a revamped board structure in the near future.


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