"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 the ChatGPT-maker burns through cash as it inches towards profitability. To that end, OpenAI has said it will soon launch ads in ChatGPT for free users, a gamble that could lead to more revenue or could send users running from the platform."
"Apparently investors think it's worth the risk if they're valuing the company $20 billion higher than the $830 billion valuation initially expected. The company's pre-money value will remain at $730 billion, per Bloomberg's source. The first tranches of funding are reportedly coming from the usual suspects: Amazon (already in talks to invest up to $50 billion), SoftBank (gearing up for $30 billion), Nvidia (close to investing $20 billion), and Microsoft."
OpenAI is nearing a funding deal to raise more than $100 billion at a valuation that could top $850 billion. The company continues to burn cash while moving toward profitability and plans to introduce ads in free ChatGPT to generate revenue, a move that could increase income or drive users away. Investors appear willing to accept higher risk, valuing the company about $20 billion above prior expectations, with a reported pre-money valuation of $730 billion. Initial funding tranches reportedly include Amazon (up to $50 billion), SoftBank ($30 billion), Nvidia ($20 billion), Microsoft, and later VC firms and sovereign wealth funds.
Read at TechCrunch
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