OpenAI could be valued at more than $850 billion and is close to a deal to raise more than $100 billion, Bloomberg reported, citing people familiar with the matter.
The deal comes as the ChatGPT maker burns through cash as it strives for profitability. To this end, OpenAI said it has begun testing advertising on ChatGPT with free users. This is a gamble that can either lead to more revenue or drive users away from the platform.
Investors apparently think it’s worth the risk if the company’s valuation is $20 billion higher than the $830 billion originally expected. According to Bloomberg sources, the company’s asset value remains at $730 billion.
Initial funding is reportedly coming from the usual suspects: Amazon (already in talks to invest up to $50 billion), SoftBank (preparing for a $30 billion investment), Nvidia (close to a $20 billion investment), and Microsoft. Venture capital and sovereign wealth funds are expected to close later, meaning the total raised could be even higher.
TechCrunch has reached out to OpenAI for comment.
