OpenAI Eyes Fresh Funding Round, Aiming for $100 Billion Valuation

OpenAI is reportedly in preliminary discussions for a new funding round that could value the company at or above $100 billion, making it one of the world’s most valuable startups. Investors involved in the fundraising round have been part of initial talks, though details such as terms, valuation, and timing are yet to be finalized and may change. If the funding round proceeds, OpenAI would become the second-most valuable startup in the US, following SpaceX. The company is also set to complete a separate tender offer in early January, allowing employees to sell shares at an $86 billion valuation.

OpenAI, known for its ChatGPT model, triggered an AI frenzy a year ago, raising $13 billion to date. It attracted investments from Microsoft and has been a key player in reshaping the tech industry’s landscape. Other companies like Amazon, Alphabet, and Salesforce have also invested billions in AI-related ventures, and OpenAI is exploring funding discussions for a new chip project with Abu Dhabi-based G42, aiming to produce semiconductors to compete with Nvidia.

The future of OpenAI briefly faced uncertainty when CEO Sam Altman was abruptly fired, but after a leadership tumult, Altman was reinstated, and the company aims to refocus on its products following the recent upheaval.