OpenAI, the powerhouse behind ChatGPT, is on the brink of a historic funding milestone, reportedly seeking to raise a staggering $1 billion in a new investment round led by Thrive Capital. This potential funding boost would elevate OpenAI’s valuation to over $100 billion, surpassing its previous valuation of $86 billion and setting a new benchmark for AI startups.
Thrive Capital, a long-time supporter of OpenAI, is expected to contribute approximately $1 billion to this round. Microsoft, another key backer of OpenAI, is also anticipated to participate, further underscoring the high stakes of this financing effort. The Wall Street Journal, which first reported the news, noted that while additional investors are yet to be confirmed, prominent names like Khosla Ventures, Infosys, and Y Combinator are among OpenAI’s existing supporters.
This funding round would mark OpenAI’s largest capital infusion since January 2023, when Microsoft invested nearly $10 billion. Despite impressive revenue figures exceeding $3.4 billion early this year, OpenAI faces significant financial pressures. Reports indicate that the company could incur losses of nearly $5 billion by year’s end and has already expended $8.5 billion on AI training and talent acquisition.
As OpenAI pushes forward with its ambitious goals, this new round of investment is crucial for sustaining its growth and innovation trajectory. The record-breaking valuation reflects both the enormous potential and the high costs associated with leading-edge artificial intelligence development.