OpenAI in Fundraising Talks at $150 Billion Valuation – Technology

(Reuters) – Artificial intelligence giant OpenAI is in talks to raise capital at a valuation of $150 billion, Bloomberg News reported on Wednesday, a move that would bolster its position as one of the world’s largest startups.

The creator of the viral chatbot ChatGPT is considering raising $6.5 billion from investors, the report says, citing people familiar with the matter, as well as taking on another $5 billion in debt from banks in the form of a revolving credit line.

OpenAI’s new valuation will be 74% higher than the $86 billion the company received in its tender offer earlier this year.

The company did not immediately respond to a Reuters request for comment, and Thrive Capital, which Bloomberg News previously reported was expected to lead the financing, declined to comment.

The ChatGPT frenzy has made OpenAI one of the biggest players in the AI ​​industry.

The company, headed by Sam Altman and backed by tech giant Microsoft, has helped spark a revival of interest in the industry in Silicon Valley.

Forge Global Holdings, a securities trading platform, on Wednesday added OpenAI to its list of “Private Magnificent Seven” startups.

The Magnificent Seven is a group of publicly traded large-cap stocks that include Microsoft, Apple, Alphabet (Google’s parent company), Tesla and others.

The latest capital injection will help OpenAI stay private longer. Most fast-growing startups shy away from going public because of regulatory costs and stock market volatility.

Alternative sources of capital, such as private equity firms and funds like Destiny Tech100 and ARK Venture Fund, have also reduced the appeal of initial public offerings.

But investors are enjoying the liquidity that public markets offer. “Venture capitalists are going to want some liquidity, and the way to get it is either to sell the company or to go public,” said Chelsea Childs, a partner at the law firm Ropes & Gray.