OpenAI is nearing the final stages of a massive new funding round that is expected to raise more than $100 billion, according to sources familiar with the matter. This record-breaking deal would provide the ChatGPT creator with significant additional capital to further develop its artificial intelligence technologies.
The funding comes as the company prepares for enormous infrastructure investments, with some projections suggesting its total valuation, including this new funding, could climb past $850 billion. This figure is higher than initial estimates, which had placed the valuation around $830 billion.
The initial portion of this round is set to be led by major strategic investors, including Amazon, SoftBank, Nvidia, and Microsoft. If these companies commit funds at the higher end of the amounts being discussed, their collective investments could approach the $100 billion mark. Final decisions from these corporate backers are anticipated by the end of the month.
A later phase of the fundraising effort will open to venture capital firms, sovereign wealth funds, and other financial institutions. This subsequent round is expected to substantially increase the total amount of capital raised.
Reports indicate that Amazon is considering an investment of up to $50 billion, while SoftBank is set to contribute as much as $30 billion. Nvidia has discussed a potential investment of $20 billion. The funding from these corporate partners is expected to be delivered in several installments throughout the year.
As part of its deepening partnership with Amazon, OpenAI is expected to significantly expand its use of Amazon’s specialized chips and cloud computing services. It is important to note that while the deal is advanced, the details are not yet finalized and are subject to change.
