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OpenAI eyeing a whopping $100 billion valuation in upcoming funding round

OpenAI funding

OpenAI is reportedly in early talks for a staggering new funding round. This financial endeavor aims for a valuation surpassing an eye-popping $100 billion. However, the specifics of this funding round, including its terms, scope, and timing, remain under wraps.

At the heart of this ambitious drive is OpenAI’s quest to secure a financial injection that would not only bolster its already significant standing in the AI realm but also potentially position it as the second-most valuable startup in the United States, just behind Elon Musk’s SpaceX​​​​. 

This push for funding occurs amid a global surge in AI development and investment. Industry giants like Amazon and Google’s parent company, Alphabet, are heavily investing in AI initiatives, showcasing a widespread recognition of AI’s transformative potential.

Also, OpenAI is rumored to be in talks with G42, a Dubai-based AI solutions developer, for a potential collaboration. This partnership might culminate in the creation of a new chip company, with G42 possibly injecting between $8 and $10 billion into this venture. The exact relationship of this collaboration with the larger funding initiative is still unclear.

The demand for AI-compatible chips is soaring, a bottleneck in AI development. This has been a boon for companies like Nvidia, the market leader in AI solutions, currently enjoying record revenues. OpenAI has been actively seeking alternatives, with a notable instance being its reported $51 million expenditure on chips from the startup Rain. This move gained attention due to the personal investment of OpenAI’s CEO in Rain, especially amidst his controversial dismissal and subsequent return.

OpenAI’s search for new investors is not new. The high costs of developing and operating its AI models have necessitated this search, despite relatively modest revenues. Microsoft has been a major player in this arena, having invested over $10 billion in OpenAI. This investment has not only provided Microsoft with access to OpenAI’s models for its applications but also a significant stake in OpenAI’s Capped-Profit division and a non-voting position on its board. This unique partnership, given OpenAI’s capped-profit structure under a nonprofit organization, has attracted regulatory attention.

Vishak

Written by Vishak

Vishak is a skilled Editor-in-chief at Code and Hack with a passion for AI and coding. He has a deep understanding of the latest trends and advancements in the fields of AI and Coding. He creates engaging and informative content on various topics related to AI, including machine learning, natural language processing, and coding. He stays up to date with the latest news and breakthroughs in these areas and delivers insightful articles and blog posts that help his readers stay informed and engaged.

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