OpenAI is nearing a deal to raise more than $100 billion at a valuation that could exceed $850 billion, Bloomberg reports, citing sources familiar with the matter.
The deal comes as the ChatGPT-maker burns through cash as it inches towards profitability. To that end, OpenAI has said it has started testing ads in ChatGPT for free users, a gamble that could lead to more revenue or could send users running from the platform.
Apparently investors think it’s worth the risk if they’re valuing the company $20 billion higher than the $830 billion valuation initially expected. The company’s pre-money value will remain at $730 billion, per Bloomberg’s source.
The first tranches of funding are reportedly coming from the usual suspects: Amazon (already in talks to invest up to $50 billion), SoftBank (gearing up for $30 billion), Nvidia (close to investing $20 billion), and Microsoft. VC firms and sovereign wealth funds are expected to close later, potentially bringing the total amount raised higher.
TechCrunch has reached out to OpenAI for comment.
