OpenAI is nearing a deal to raise more than $100 billion at a valuation that could exceed $850 billion, Bloomberg reported, citing people familiar with the matter.
The deal comes as ChatGPT creators burn through cash as they move toward profitability. To that end, OpenAI said it has started testing ads on ChatGPT with free users. This is a gamble that could either generate more revenue or send users off the platform.
Clearly, investors think it’s worth the risk if they value the company at $20 billion more than the $830 billion initially expected. According to Bloomberg’s sources, the company’s currency transfer value will remain at $730 billion.
The first round of funding reportedly comes from the usual suspects, including Amazon (already in talks to invest up to $50 billion), SoftBank (ready to invest $30 billion), Nvidia (close to investing $20 billion), and Microsoft. VCs and sovereign wealth funds are expected to close later, potentially pushing the total raised higher.
TechCrunch has reached out to OpenAI for comment.
