OpenAI is nearing a deal to raise over $100 billion, with a valuation potentially exceeding $850 billion, according to Bloomberg sources.
The deal is significant as the ChatGPT creator works towards profitability, recently introducing ads in ChatGPT for free users—a move that may boost revenue but also risk losing users.
Investors seem convinced of the risk’s worth, valuing the company $20 billion higher than the initially expected $830 billion. OpenAI’s pre-money valuation stands at $730 billion, according to Bloomberg.
Initial funding tranches are reportedly from familiar investors: Amazon (considering up to $50 billion), SoftBank (planning $30 billion), Nvidia (near a $20 billion investment), and Microsoft. VC firms and sovereign wealth funds are expected to contribute later, potentially increasing the total amount raised.
TechCrunch has contacted OpenAI for comments.