According to a report by Bloomberg News on Wednesday, OpenAI, a major player in the industry, is in talks to raise $150 billion in funding, which would solidify its position as one of the largest businesses globally.
According to a source quoting persons familiar with the subject, the creator of the popular chatbot ChatGPT is in talks to raise $6.5 billion from investors and another $5 billion in loans from banks in the form of a revolving credit facility.
In comparison to the $86 billion it received in a tender offer earlier this year, OpenAI’s new valuation would be 74% greater.
Thrive Capital, which Bloomberg News had earlier reported would lead the fundraising, declined to comment, and the company did not immediately respond to Reuters’ request for comment.
OpenAI has become one of the major players in the artificial intelligence market thanks to the craze created by their ChatGPT.
The business, headed by Sam Aitman and supported by Microsoft, the industry titan in technology, has helped to revive Silicon Valley’s interest in the field.
On Wednesday, Forge Global Holdings, a private securities marketplace, included OpenAI in its roster of “Private Magnificent Seven” firms.
The Magnificent Seven are a collection of mega-cap stocks that are traded publicly and include Tesla, Apple, Microsoft, Alphabet, the parent company of Google, and others.
The most recent funding round will extend OpenAI’s private status.
The majority of successful businesses are choosing not to go public because of the associated fees and stock market volatility.
The allure of first public offerings has also diminished because of alternative financial sources, including private equity companies and funds like ARK Venture Fund and Destiny Tech100.
But investors do enjoy the liquidity that public markets offer. “Venture capitalists are going to want some liquidity, and the way for them to get that is either the company sells itself or goes public,” said Chelsea Childs, partner at law firm Ropes & Gray.
Also read: Unveiling the Ethical Imperatives: Navigating the Intersection of AI and Cybersecurity
Do Follow: CIO News LinkedIn Account | CIO News Facebook | CIO News Youtube | CIO News Twitter
About us:
CIO News is the premier platform dedicated to delivering the latest news, updates, and insights from the CIO industry. As a trusted source in the technology and IT sector, we provide a comprehensive resource for executives and professionals seeking to stay informed and ahead of the curve. With a focus on cutting-edge developments and trends, CIO News serves as your go-to destination for staying abreast of the rapidly evolving landscape of technology and IT. Founded in June 2020, CIO News has rapidly evolved with ambitious growth plans to expand globally, targeting markets in the Middle East & Africa, ASEAN, USA, and the UK.
CIO News is a proprietary of Mercadeo Multiventures Pvt Ltd.
