OpenAI Nears $100 Billion Valuation, Poised for Second-Most Valuable U.S. Startup Status

OpenAI, the visionary behind ChatGPT, is in early talks for a new funding round, targeting a valuation of $100 billion or more. Successful funding would solidify OpenAI as the U.S.’s second-most valuable startup, trailing only Elon Musk’s SpaceX.

Potential investors are discussing details like terms, valuation, and timing, which may change as the deal progresses.

The company plans to conclude a separate tender offer in early January, allowing employees to sell shares at an impressive $86 billion valuation. Thrive Capital, leading this offer, saw more demand than available shares, indicating strong confidence in OpenAI’s trajectory.

OpenAI’s soaring valuation mirrors its meteoric rise a year ago with ChatGPT. Silicon Valley’s hottest startup has raised $13 billion to date, mainly from Microsoft Corp. Its innovative AI approach has reignited interest and investment in the industry, with significant players like Amazon.com Inc. and Alphabet Inc. allocating billions to OpenAI-rival Anthropic.

OpenAI’s Collaboration with G42

OpenAI collaborates with G42 on a potential $8 billion to $10 billion funding for a chip venture called Tigris. The goal is to produce semiconductors rivalling those from industry giant Nvidia.

Last month, OpenAI faced uncertainty when CEO Sam Altman was abruptly ousted from the board. Despite investor concerns, Altman was reinstated after a five-day leadership shakeup, and a new board was appointed. After this upheaval, the company aims to reassure customers of its renewed focus on product development.

OpenAI spokeswoman Hannah Wong emphasized:

We believe Sam is the best leader for OpenAI. The strong support from his team underscores that he is an effective CEO who is open to different points of view, willing to tackle complex challenges, and who demonstrates care for his team.

VP Of Communications at OpenAI, Hannah Wong

As OpenAI navigates its path to new funding, its groundbreaking innovations continue to reshape the AI landscape.