OpenAI plans a $6.5 billion raise, valuation of $150 billion

The industry leader in artificial intelligence, OpenAI, is reportedly in talks to raise $150 billion in capital as one of the biggest startups globally.

The Bloomberg report, citing people with knowledge of the situation, stated that the company is talking about raising $6.25 billion from investors and another $5 billion in debt from banks in the form of a revolving credit facility.

The new valuation is far higher than any other AI startup operating today and substantially higher than OpenAI’s previously disclosed $86 billion valuation from earlier this year.

Thrive Capital, a significant OpenAI backer in earlier rounds, will spearhead the funding round. Microsoft, Apple, and Nvidia are among the other rumored investors. These companies are OpenAI partners with a stake in the AI startup’s success.

OpenAI has become one of the leading companies in the artificial intelligence space. with the help of its extremely popular chatbot, ChatGPT, The business, headed by Sam Altman and supported by Microsoft, the industry titan in technology, has helped to revive Silicon Valley’s interest in the field.

Forge Global Holdings, a private securities marketplace, included OpenAI in its  “Private Magnificent Seven”. The Magnificent Seven is a collection of mega-cap stocks that are publicly traded, which include Tesla, Nvidia, Apple Amazon, Microsoft, and Alphabet, the parent company of Google.