OpenAI Approaches $100 Billion Valuation with New Funding Round Led by Thrive Capital

OpenAI Approaches $100 Billion Valuation with New Funding Round Led by Thrive Capital

OpenAI is nearing a significant funding round that could value the company at or above $100 billion, according to sources familiar with the discussions. Thrive Capital is set to lead this investment round, contributing approximately $1 billion. This move could position OpenAI as one of the most valuable venture-backed startups globally, highlighting the increasing demand for generative artificial intelligence technologies.

The funding discussions, which have been ongoing since at least December, underscore OpenAI’s prominent role in the AI sector. The company’s widely acclaimed ChatGPT has captured public attention and spurred a competitive race among major tech firms to integrate AI into their products and back emerging startups.

Sarah Friar, OpenAI’s Chief Financial Officer, informed employees about the need for new capital in a recent memo. Although specific details were not disclosed, the funding is expected to support the company’s computing needs and operational expenses. Additionally, Friar mentioned plans for a tender offer later this year, allowing employees to sell some of their shares. However, these plans are still in the early stages and details remain unconfirmed.

This upcoming funding round, spearheaded by Thrive Capital and supported by existing backer Microsoft Corp., reflects the growing interest and investment in AI-driven solutions.

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