OpenAI Nears $100B Raise at $850B+ Valuation

OpenAI is reportedly closing in on a massive funding round that could raise more than $100 billion and value the company at over $850 billion, according to a Bloomberg report cited by TechCrunch.

The potential deal would mark one of the largest private financings in tech history and underscores how aggressively investors are backing generative AI, even as the economics of the sector remain unsettled.

The ChatGPT maker is said to be burning through significant amounts of cash as it moves toward profitability. In parallel with the funding push, OpenAI has begun testing ads in ChatGPT for free users, a move aimed at boosting revenue. The company’s experiment with advertising is described as a gamble that could either improve its business model or push users away from the platform.

Despite that uncertainty, investors appear willing to assign OpenAI a higher valuation than previously expected. The new deal could price the company at around $20 billion above an earlier anticipated $830 billion figure, Bloomberg’s sources reportedly said. The pre-money valuation is said to remain at $730 billion.

The first portions of the funding are expected to come from a familiar roster of tech and investing giants:

• Amazon is already in talks to invest up to $50 billion.
• SoftBank is reportedly preparing around $30 billion.
• Nvidia is said to be close to investing $20 billion.
• Microsoft is also part of the group of early backers in this round.

According to the report, venture capital firms and sovereign wealth funds are expected to follow later, which could push the total amount raised even higher than $100 billion.

OpenAI and the named investors have not, in this sourced material, publicly confirmed the details of the round. The structure, final size and valuation could still change as discussions conclude.