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OpenAI nears $100B roundwith AmazonNvidia leading

OpenAI Stargate
Image credits: GiulioBenzin/DepositPhotos

According to the reportsOpenAI is close to completing the first phase of a new financing round that could exceed $100 billion. If finalisedit would mark a record-breaking raise for the ChatGPT maker.

The company’s pre-money valuation is expected to remain at $730 billion. Including the fresh capitalOpenAI’s overall valuation could climb above $850 billionhigher than earlier estimates of $830 billion.

The talks are still ongoingand details could change before the deal is officially closed.

Strategic corporate investors

The first tranche of funding is expected to come mainly from strategic corporate investors. Sources say companies involved in the discussions include AmazonSoftBankNvidiaand Microsoft.

If each commits near the upper end of the proposed rangestotal contributions in this initial phase could approach $100 billion. Allocations are expected to be finalised by the end of this month.

Previous reports indicated that Amazon may invest up to $50 billionSoftBank could commit as much as $30 billionand Nvidia has discussed a potential $20 billion investment. The funding from these corporate backers is expected to be distributed in instalments throughout the year.

A second phase of the fundraising is expected to follow. That round would likely involve venture capital firmssovereign wealth fundsand other financial institutions.

Moreoversources suggest this additional capital could push the total raise even higherthough the final amount has not yet been confirmed.

As part of its deeper collaboration with AmazonOpenAI is expected to increase its use of Amazon’s cloud infrastructure and AI chips. This would strengthen ties between the two companies as OpenAI continues expanding its computing capacity.

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