"OpenAI is in talks to raise up to $100 billion in a funding round that could value the ChatGPT maker at up to $830 billion, the Wall Street Journal reported Thursday, citing anonymous sources. The company is aiming to raise the funding by the end of the calendar first quarter next year, and it may ask sovereign wealth funds to invest in the round, the WSJ reported."
"The funding would come as OpenAI commits to spend trillions of dollars and strikes deals around the world as the company tries to stay ahead in the race to develop AI technology. The cash injection would also help the company with its spending on inferencing, which seems to be funded more by cash than cloud credits, suggesting the company's compute costs have grown beyond what partnerships and credits can subsidize."
OpenAI is negotiating a funding round aiming to raise up to $100 billion that could value the company at as much as $830 billion. The company is targeting the end of the first quarter next year and may invite sovereign wealth funds to participate. The capital would support multitrillion-dollar commitments and increased spending on inferencing, which appears funded more by cash than cloud credits, indicating rising compute costs beyond partnership subsidies. Competition from Anthropic and Google has accelerated model releases and ecosystem expansion. Investor sentiment has cooled amid concerns about sustained debt-fueled spending and memory-chip shortages. OpenAI's annual run-rate revenue is about $20 billion and cash reserves exceed $64 billion.
Read at TechCrunch
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