OpenAI shifts value to US$1.25 trillion as funding talks finalise
The fundraising discussions are ongoing and details could change, sources said.
OpenAI, the company behind the popular ChatGPT AI, is aiming for a staggering US$1.25 trillion (S$1.6 trillion) valuation as it finalises its latest funding talks, according to sources familiar with the matter. The tech giant is seeking to raise about US$30 billion in the new funding round. Previously, OpenAI sought to raise its valuation to US$1.4 trillion, but the discussions have shifted it up by US$150 billion.
Details of the fundraising talks are still fluid, as the sources noted. OpenAI most recently raised a US$122 billion round in March at a valuation of US$852 billion. Coatue Management is reportedly in talks to co-lead the new funding round. In addition to Coatue, OpenAI has been in discussions with various investment funds from the United Arab Emirates and others, such as BlackRock.
OpenAI has not commented on the matter, while Coatue has yet to respond to a request for comment. Nevertheless, the company anticipates having all investor commitments in place by the end of next week.
Tech stocks have taken a dip this week amid mixed quarterly earnings from companies like Meta Platforms and Tesla, raising concerns about excessive spending on artificial intelligence. OpenAI's rival Anthropic PBC is set to debut on the stock market in November, and investors are eagerly watching its IPO performance. OpenAI has postponed its own planned IPO until 2027, prioritising AI safety efforts.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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