OpenAI is nearing a deal to raise more than $100 billion at a valuation that could exceed $850 billion, Bloomberg reports, citing sources familiar with the matter.
The deal comes as ChatGPT maker is cash-strapped and headed for profitability. To that end, OpenAI said it has begun testing ads in ChatGPT for free users, a gamble that could lead to more revenue or send users off the platform.
Investors apparently think it’s worth the risk, valuing the company $20 billion higher than the $830 billion valuation originally expected. The company’s pre-sale value will remain at $730 billion, according to a Bloomberg source.
The first tranches of funding are said to come from the usual suspects: Amazon (already investing up to $50 billion), SoftBank (preparing to invest $30 billion), Nvidia (close to investing $20 billion) and Microsoft. Venture capital firms and sovereign wealth funds are expected to close later, potentially increasing the total amount raised.
TechCrunch has reached out to OpenAI for comment.