OpenAI: Funding Exceeding $100 Billion From Amazon, SoftBank, Nvidia and Microsoft
OpenAI Finalizes First Phase of New Funding Round With Valuation Up to $850 Billion
OpenAI is close to finalizing the first phase of a new funding round estimated to raise more than $100 billion, according to people familiar with the matter. The deal would mark a record agreement, providing the startup with additional capital to further develop its artificial intelligence tools.
As the creator of ChatGPT prepares to spend trillions on infrastructure investments, the company’s total valuation — including the new funding — could exceed $850 billion, according to some of the same sources. This figure is higher than the initially estimated $830 billion. The pre-money valuation will remain at $730 billion, one source said, speaking on condition of anonymity due to the private nature of the information.
The first tranche of the funding round is expected to come primarily from strategic investors, including Amazon.com Inc., SoftBank Group Corp., Nvidia Corp. and Microsoft Corp., the sources said. If these companies invest close to the upper amounts discussed, their commitments will approach $100 billion. Some participants are expected to finalize their investments by the end of the month.
The next phase of the deal — involving venture capital firms, sovereign wealth funds and other financial investors — is expected to be completed later and could significantly increase the total amount raised.
The agreement has not yet been finalized and its terms may change, according to some of the sources.
Representatives of OpenAI, Amazon, Nvidia, SoftBank and Microsoft either declined to comment or did not immediately respond to requests for comment.
Regarding the anticipated deal, Amazon is expected to invest up to $50 billion, SoftBank up to $30 billion, while Nvidia has discussed an investment of $20 billion, Bloomberg previously reported. The funds from corporate investors are expected to be paid in installments over the course of this year.
As part of its collaboration with Amazon, OpenAI is expected to expand its use of Amazon’s chips and cloud computing services, according to one of the sources.
SOURCE: newmoney.gr
