Sam Altman-led OpenAI could ring in the new year 2024 with some good news – it is in early talks to raise new funds at a valuation of at least $100 billion.
What Happened: If it goes through, this will be at least a $10 billion increase in valuation for the Microsoft Corp.-backed MSFT AI startup from the previously reported $90 billion number, according to Bloomberg.
It will also be a more than three-fold increase in the AI startup's valuation from the previous round less than 12 months ago. OpenAI counts Microsoft amongst its biggest investors – the Satya Nadella-led company has invested $13 billion so far, with a 49% stake.
It will also make OpenAI the second most valuable startup in the U.S., only behind Elon Musk's SpaceX. The space startup is being valued at $180 billion after a recent tender offer.
OpenAI could also be the third most valuable privately-held company, behind ByteDance at $225 billion and SpaceX at $180 billion, data from CBInsights suggests.
According to the report, details of the fundraising are still not final, so the actual numbers could be slightly different when the round closes.
Additionally, OpenAI will also let some of its employees sell their shares in a separate tender offer that values the startup at $86 billion.
The report also adds that the Altman-led company is looking to raise funds for its chip venture, with the number pegged between $8 billion to $10 billion. The venture is aimed at taking on the market leader in AI chips, Nvidia Corp. NVDA.
Why It Matters: OpenAI's skyrocketing valuations reflect the excitement around AI – post the launch of ChatGPT in 2022, the company has announced multiple upgrades with more advanced features, with the most recent being GPT-4 Turbo.
OpenAI's success with ChatGPT has also kicked off a frenzy in the AI segment, with rivals Alphabet Inc.'s GOOG GOOGL Google and Meta Platforms Inc. META still playing catch up with Gemini and Llama 2, respectively.
Read Next: Jordan Peterson Says Grok Is As Woke As ChatGPT, Elon Musk Blames It On The Internet
Open AI and Sam Altman Photo via Shutterstock
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