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OpenAI, the creator of ChatGPT, is reportedly in preliminary talks for early-stage funding, aiming for a valuation surpassing $100 billion

OpenAI, a leading artificial intelligence company based in San Francisco, is reportedly in the early stages of discussions to secure a new round of funding, with a valuation target that could exceed $100 billion. However, the specific details regarding the terms, valuation, and precise timing of this funding initiative are yet to be finalized and may be subject to potential changes, according to a Bloomberg report.

OpenAI is known for its significant contributions to the field of artificial intelligence, particularly with the launch of ChatGPT in November 2022. ChatGPT is a conversational AI system that can generate human-like responses based on user input, marking a substantial advancement in generative AI technology. This innovation played a key role in boosting OpenAI’s profile and valuation.

Microsoft has already committed to an investment exceeding $10 billion in OpenAI, further solidifying the partnership between the two entities. The upcoming funding initiative is expected to enhance OpenAI’s financial position and support its ambitious projects in the field of AI.




OpenAI, Creator of ChatGPT, Eyes $100 Billion Valuation in Fresh Funding Round - Tekedia
OpenAI, Creator of ChatGPT, Eyes $100 Billion Valuation in Fresh Funding Round

In addition to the broader funding discussions, OpenAI has reportedly been engaged in talks with G42, an entity based in Abu Dhabi, regarding funding for a new chip project. The details surrounding this chip project and its relationship to the larger funding discussions are not definitively established in the report. The discussions with G42 are said to involve the potential investment of $8 billion to $10 billion.

Separately, OpenAI is set to conclude a tender offer led by Thrive Capital by early January. This initiative is designed to enable OpenAI employees to sell shares, with an anticipated valuation of $86 billion. The completion of this tender offer is expected to provide liquidity for employees and potentially attract new investors.

It is noteworthy that OpenAI underwent a leadership shuffle in late November, involving the removal of CEO Sam Altman on November 17, followed by his reinstatement just four days later. While the reasons for Altman’s initial removal were not detailed, his return was accompanied by assurances of a revamped board structure. Microsoft’s participation in OpenAI’s board is disclosed to be in a non-voting, observer capacity.

The funding discussions and potential investment from various sources underscore the continued interest and confidence in OpenAI’s capabilities and contributions to the advancement of artificial intelligence. As the company explores new funding avenues and collaborations, it aims to maintain its position at the forefront of AI innovation and research.

In summary, OpenAI’s ongoing discussions for a new funding round, partnerships with entities like G42, and the upcoming tender offer led by Thrive Capital collectively indicate a dynamic and evolving landscape for the company as it navigates the forefront of AI technology and strives for further breakthroughs in the field.

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