New updates have been reported about OpenAI (PC:OPAIQ)
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OpenAI is reportedly in advanced discussions to raise as much as $100 billion in fresh capital, in a round that could value the company at up to $830 billion, according to sources cited by the Wall Street Journal. The funding, targeted for completion by the end of the first quarter next year, would likely involve sovereign wealth funds and follows earlier reporting that suggested a potential valuation closer to $750 billion. This prospective raise comes on top of more than $64 billion already on OpenAI’s balance sheet and a recent secondary transaction that valued the company at about $500 billion, underscoring how quickly investor expectations around its future cash flows and strategic position are escalating.
The capital is expected to support OpenAI’s stated ambition to spend trillions of dollars over time on AI development and global infrastructure, including expanding compute capacity for both model training and inferencing as demand for ChatGPT and its APIs accelerates. Rising compute costs appear to be outpacing the benefits of cloud partnerships and credits, pushing OpenAI toward more direct, cash-based funding for infrastructure. The company is also under pressure to keep releasing more advanced models and deepen its role in the developer ecosystem as competition intensifies from other AI labs. At the same time, broader sentiment toward AI investments has cooled, with questions emerging over the sustainability of massive, debt-fueled spending by major tech and cloud players amid chip supply constraints, particularly in memory. Rumors continue that OpenAI could eventually pursue an IPO to raise tens of billions more and that it is exploring a separate $10 billion strategic investment from Amazon tied to access to the latter’s AI chips; current revenue is said to be running at an annualized rate of roughly $20 billion. OpenAI declined to comment on the reported fundraising plans.