OpenAI Seeks $6.5 Billion Funding at $150 Billion Valuation

The AI leader is in talks with investors and banks to secure significant capital, highlighting the high costs of advancing AI technology.

OpenAI is negotiating to raise $6.5 billion from investors at a $150 billion valuation, nearly doubling its previous valuation of $86 billion earlier this year.
The funding round is led by Thrive Capital, with potential contributions from major partners like Microsoft, Apple, and Nvidia.
In addition to equity funding, OpenAI is also in discussions to secure $5 billion in debt through a revolving credit facility.
The rising costs of developing AI models are underscored by Big Tech's significant capital expenditures, with companies like Alphabet, Amazon, Meta, and Microsoft spending $52.9 billion last quarter.
OpenAI's competitors, including Anthropic and Mistral, have also raised substantial funds recently, indicating intense competition and the necessity for large capital reserves in the AI sector.