Artificial intelligence leader OpenAI is reportedly in discussions to raise capital at a valuation of $150 billion, according to Bloomberg News.
If successful, this would solidify the company’s position as one of the largest startups globally. The maker of the popular AI chatbot, ChatGPT, is aiming to secure $6.5 billion from investors, with an additional $5 billion in debt financing through a revolving credit facility from banks, sources familiar with the matter revealed.
This new valuation marks a significant increase of 74% from the $86 billion valuation OpenAI achieved during a tender offer earlier this year. Thrive Capital, expected to lead the funding round, declined to comment on the development, and OpenAI has yet to respond to inquiries.
The surge in demand for AI technologies, fueled by the success of ChatGPT, has helped propel OpenAI into a central role in the artificial intelligence industry. The company, led by CEO Sam Altman and backed by tech giant Microsoft, has also reignited interest in AI across Silicon Valley.
OpenAI was recently added to Forge Global Holdings’ list of “Private Magnificent Seven” startups, joining major public companies such as Microsoft, Apple, Alphabet, and Tesla. The company’s latest fundraising efforts would allow it to remain private for a longer period, as many high-growth startups are currently avoiding public markets due to regulatory complexities and market volatility.
While private capital remains attractive to many firms, public markets still offer liquidity that appeals to investors.
“Venture capitalists will eventually seek liquidity, and the paths to achieving that are either through an acquisition or by going public,” noted Chelsea Childs, a partner at Ropes & Gray law firm.
