OpenAI Targets $100B to Surpass Visa and Oracle
These developments add to speculation about a potential initial public offering (IPO), which is projected at $1 trillion.
Quick overview
- OpenAI is pursuing a funding round aiming to raise up to $100 billion, potentially reaching a valuation of $830 billion.
- The company is targeting completion of this funding by the end of the first quarter of next year, reflecting its ambitious growth plans.
- Despite strong demand for AI integration, investor caution and industry challenges, such as supply chain constraints, persist.
- Speculation about a potential IPO suggests OpenAI could be valued at as much as $1 trillion.
The company could reach a valuation of $830 billion and continue expanding its investments in artificial intelligence.
OpenAI, the artificial intelligence (AI) company best known for developing ChatGPT, is in talks to pursue one of the most ambitious funding rounds in tech history, aiming to raise up to $100 billion and reach a valuation of around $830 billion.
According to sources familiar with the matter cited by The Wall Street Journal, the discussions are still at an early stage, but they underscore the scale of the U.S.-based company’s growth ambitions and investment plans.
If completed, the capital raise would rank among the largest private funding rounds ever attempted, far surpassing most previous fundraisings in the technology sector.
The company behind ChatGPT keeps growing
OpenAI’s interest in attracting capital from sovereign wealth funds and other major financial players reflects its growing infrastructure needs and its ongoing development of advanced AI technologies.
The company is targeting the completion of the funding round by the end of the first quarter of next year, although the terms could still change as negotiations progress.
A potential valuation of $830 billion would represent a significant leap from recent funding rounds and from the roughly $500 billion valuation implied by secondary share transactions.
At that level, OpenAI would be worth more than major global companies such as Tencent ($726.4 billion), Visa ($670.1 billion), Oracle ($551.4 billion), and Mastercard ($512.4 billion).
This rapid rise highlights how quickly OpenAI has scaled within the tech ecosystem, driven by the growing adoption of its products and expectations surrounding new applications based on machine learning.
Challenges facing artificial intelligence
The fundraising effort comes at a time when investment in artificial intelligence has begun to show signs of cooling after its initial surge.
Despite strong demand from companies seeking to integrate AI into their operations, some investors remain cautious about the long-term sustainability of massive capital commitments to the sector.
At the same time, the industry faces challenges such as supply chain constraints for key components, including memory chips critical to AI infrastructure.
OpenAI declined to comment on the reports. However, sources close to the process suggest the company is also exploring alternative sources of capital, including potential strategic partnerships with major technology firms.
Recurring rumors point to interest from giants such as Amazon, which is said to be considering an investment of around $10 billion, although no such talks have been publicly confirmed.
These developments add to speculation about a potential initial public offering (IPO), which some analysts believe could value OpenAI at as much as $1 trillion.
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