OpenAI shakeup continues with talks of new funding, chip venture in the works.
OpenAI is currently having early talks to get more funding, and they’re looking at a value of at least $100 billion. This scoop comes from people in the know, as reported by Bloomberg News on Friday.
The details, including the terms, valuation, and timing of the funding round, haven’t been decided yet and might still change, as mentioned in the report.
Additionally, OpenAI has been in talks to secure funding for a new chip venture with G42, a company based in Abu Dhabi, according to the same report.
The report isn’t clear if the funding for the chip venture is linked to the overall funding for OpenAI. It mentions that OpenAI is thinking about getting between $8 billion and $10 billion from G42.
OpenAI is getting ready to complete a unique tender offer led by Thrive Capital in early January. This would allow employees to sell shares at a valuation of $86 billion, according to the report.
Microsoft has pledged to invest more than $10 billion in OpenAI, the trailblazer of the generative artificial intelligence trend, known for introducing ChatGPT in November 2022.
When contacted by Reuters, Microsoft declined to provide any additional information, and OpenAI did not respond to Reuters’ request for comment.
ChatGPT, a chatbot capable of producing human-like responses from user prompts, has played a significant role in boosting the popularity of AI and contributing to the remarkable increase in the valuation of San Francisco-based OpenAI. The company recently conducted a $300 million share sale, reaching a valuation of $30 billion.
In late November, OpenAI CEO Sam Altman disclosed that Microsoft would assume a non-voting, observer position on the company’s board.
A noteworthy development occurred on November 17 when OpenAI ousted Altman without providing a detailed explanation, causing concern among investors and employees. However, Altman was reinstated four days later with the commitment to establish a new board.
