OpenAI is nearing a deal to raise more than one hundred billion dollars, according to a Bloomberg report. The funding round could value the company at over eight hundred and fifty billion dollars, citing sources familiar with the matter.
This move comes as the maker of ChatGPT continues to spend significant capital while working toward profitability. In an effort to generate more revenue, OpenAI has begun testing advertisements for its free ChatGPT users. This strategy is a gamble that could either increase income or drive users away from the platform.
Investors appear confident, as the reported valuation is twenty billion dollars higher than an initially expected eight hundred and thirty billion. The company’s pre-money valuation will reportedly remain at seven hundred and thirty billion dollars.
The first portions of this substantial funding are said to be coming from established technology partners. These include Amazon, which is in talks to invest up to fifty billion dollars, SoftBank, preparing an investment of thirty billion, and Nvidia, nearing a deal for twenty billion. Microsoft is also expected to participate. Venture capital firms and sovereign wealth funds are anticipated to join in later stages, potentially increasing the total amount raised even further.
TechCrunch has reached out to OpenAI for comment on these reports.