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OpenAI is reportedly seeking to raise at least $5 billion in a new funding round that could value the company at $150 billion.
According to the Financial Times, OpenAI has been in discussions with investors to secure capital to advance its efforts in AI development, aiming to create models that outperform human intelligence. This move would also strengthen its competitive edge over rivals such as Anthropic, Google, and Meta.
Venture firm, Thrive Capital, is reportedly leading the funding round, with other major investors like Apple, Nvidia, and Microsoft — already a key backer with a $13 billion investment — also in discussions. If successful, the new valuation would represent a major leap from the company’s $86 billion valuation at the beginning of 2024.
This latest fundraising effort is set to make OpenAI one of the most valuable private companies globally, placing it just behind ByteDance, the parent company of TikTok and Elon Musk’s SpaceX.
OpenAI’s ascent in the tech industry has been swift, fueled by the immense popularity of its ChatGPT chatbot, launched in 2022. Despite its fast growth and increasing revenues — estimated at $2 billion annually — the company remains unprofitable, largely due to the high costs associated with developing cutting-edge AI models.
However, OpenAI’s journey has not been without hurdles. In late 2023, CEO Sam Altman was temporarily ousted by the board, causing significant internal disruption. Although Altman was reinstated soon after, the shake-up led to the departure of key figures, including co-founder Ilya Sutskever.
The forthcoming funding round is seen as crucial for OpenAI as it faces intensifying competition from AI giants like Google and Meta. To date, OpenAI has raised approximately $13.5 billion, with Microsoft being its largest investor.
