OpenAI toward new funding round with record $100 billion valuation | Generative ai chatgpt | Generative ai examples in finance | Generative ai in finance and accounting examples | Turtles AI

OpenAI, the creator of ChatGPT, is currently in negotiations to secure a new round of funding, with a valuation exceeding $100 billion, marking significant growth from the previous $86 billion. Thrive Capital leads this round with an expected investment of $1 billion. Microsoft may also participate, but its membership is not yet confirmed. The funding comes at a crucial time for OpenAI, which, despite annual revenues of $3.4 billion, could post losses of up to $5 billion by the end of the year.

Key points:

• Valuation of over $100 billion: OpenAI aims to surpass the $100 billion valuation mark, well above its previous valuation of $86 billion.
• Thrive Capital leads the round: Thrive Capital, already an investor in OpenAI, plans to invest $1 billion in this new funding round.
• Possible involvement of Microsoft: Microsoft, which has already invested nearly $10 billion as of January 2023, may participate again.
• Significant losses expected in 2024: Despite growing revenues, OpenAI could face significant losses, estimated at around $5 billion.

OpenAI, the AI company known for developing ChatGPT, is in the process of closing a new funding round that could raise its valuation to over $100 billion. This represents a substantial increase from the previous valuation of $86 billion, positioning OpenAI as one of the most valuable AI startups globally. Thrive Capital, a major backer of OpenAI, is leading this deal with an expected investment of about $1 billion. In addition to Thrive Capital, other investors such as Khosla Ventures, Infosys and Y Combinator could participate in the round. However, the involvement of Microsoft, already an investor with nearly $10 billion as of January 2023, has not yet been confirmed.

This new influx of capital comes at a crucial time for OpenAI, which has seen its annual revenue exceed $3.4 billion. However, despite its commercial success, the company faces considerable economic challenges. According to sources close to the company, OpenAI could experience significant losses, estimated at around $5 billion by the end of the year. These losses would be mainly related to the large training and personnel costs required to support the development of advanced AI technologies, which so far would have already consumed about $8.5 billion.

The goal of this new round of funding is to provide OpenAI with the resources it needs to continue developing and improving its products, as well as to expand its market presence. With the support of key investors, OpenAI hopes to consolidate its position as a leader in the artificial intelligence industry, despite the economic challenges on the horizon.

OpenAI is at a decisive stage in its evolution. The success of this funding round could determine not only the future of the company, but also the pace of development of the entire AI industry.