OpenAI Reportedly Set to Raise Funds at $150 Billion Valuation

AI heavyweight OpenAI is in talks to raise funds at a valuation of $150 billion, Bloomberg News reported. This move would firm up its status as one of the largest startups in the world.

The company is discussing raising $6.5 billion from investors and another $5 billion in debt from banks in the form of a revolving credit facility, the report said, citing sources familiar with the matter.

OpenAI’s new valuation would be 74 percent higher than the $86 billion it fetched in a tender offer earlier this year.

The company did not immediately respond to Reuters’ request for comment. Thrive Capital, which Bloomberg News said would lead the funding, also declined to comment.

The frenzy sparked by its viral chatbot, ChatGPT, has made OpenAI one of the biggest players in the artificial-intelligence industry.

The company, led by Sam Altman and backed by technology behemoth Microsoft, has steered a resurgence of Silicon Valley’s interest in the space.

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

The Magnificent Seven is a group of publicly traded mega-cap stocks including Microsoft, Apple, Google-parent Alphabet, Tesla and others.

(Reporting by Niket Nishant in Bengaluru; Editing by Shinjini Ganguli)