OpenAI in Talks for $100 Billion Valuation with New Deal

OpenAI is discussing a new deal that could raise its value to $100 billion or more. The new investment would represent a $20 billion value increase, as recent estimations valued the company at $80 billion a few months ago.

According to CNBC, the investment firm Thrive Capital has led the round and is willing to invest $1 billion. As reported by anonymous sources, other relevant tech companies like Microsoft—which recently declared OpenAI as one of its competitors—are also participating in the round.

OpenAI’s exponential growth began in 2022, after the launch of its popular AI chatbot ChatGPT. Last year, in 2023, the company was valued at $29 billion. Even though more companies have developed similar AI products, OpenAI is still leading the way in the AI market.

According to the New York Times, the new investment “would allow other existing shareholders to sell their shares.” Not many details have been revealed, and OpenAI and Microsoft have not commented on the recent reports regarding the new round.

OpenAI’s technologies have impressed a large public, and many are curious about its upcoming developments. The San Francisco-based company recently announced a new product, a search engine called SearchGPT, that could take Google’s audience and impact the way people search for information.

Despite all the internal controversy with most cofounders leaving the company and former and current workers warning about security risks, the company keeps getting investors’ attention.

OpenAI is also facing a possible relocation or legal battle as a new AI safety bill could be approved in the following days. The AI startup has publicly rejected the new bill, stating that it “makes no sense,” and has stopped its office expansion in California while local authorities announce the final verdict in the next few days.