What you need to know
- OpenAI will reportedly raise $6.5 billion through another round of funding from its investors, including Microsoft, Apple, NVIDIA, and Thrive Capital.
- The round of funding could push the AI firm’s market cap well beyond $150 billion.
- The ChatGPT maker also wants to raise $5 billion in debt from a few banks.
As a tech enthusiast with a knack for predicting market trends and a history of following OpenAI’s journey closely, I must say that this latest development has left me both astounded and intrigued. When I read about their imminent bankruptcy just last month, I couldn’t help but wonder if the ChatGPT maker had reached its expiration date. But now, with reports of a whopping $6.5 billion funding round from some tech giants like Microsoft, Apple, and NVIDIA, it seems that OpenAI is far from fading away.
Recently, it was shared that OpenAI was facing potential bankruptcy within a year, anticipating losses of approximately $5 billion. It appeared then as though another investment round from stakeholders could serve as a crucial financial lifeline for the company behind ChatGPT to keep operating.
It appears that OpenAI could continue its operations, as per recent reports by Bloomberg. The company behind ChatGPT is allegedly negotiating a $6.5 billion investment, potentially increasing its market value to around $150 billion. Furthermore, the startup aims to secure an additional $5 billion in debt financing from various banks.
Previously, OpenAI was valued at around $86 billion in the market. But with the recent investment, its valuation increases by 74%, potentially placing it among the largest startups globally.
It’s not yet known who the investors might be, but Thrive Capital, a significant backer of OpenAI, is said to take the lead in a large-scale funding round. Additionally, Microsoft, Apple, and NVIDIA are anticipated to contribute to this funding round to sustain OpenAI’s ongoing projects and initiatives.
In a memo addressed to OpenAI staff members last August, Chief Financial Officer Sarah Friar pointed out that the recently acquired funds will be used for purchasing computing power and managing other operational expenses. Additionally, the memo hinted at an upcoming opportunity for employees to offload their shares in a tender offer, which is expected to occur later this year.
In other news, the company behind ChatGPT is considering increasing the cost of its subscription plans, with a possible monthly fee of up to $2,000 for their next-generation AI models. Additionally, there are expectations that they will release their advanced reasoning Strawberry model within the next fortnight, which could make ChatGPT even more intelligent.
“We’re still gathering facts, but rest assured, we’ll share further details about this evolving situation as soon as we have more information regarding the deal.
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2024-09-12 12:08