OpenAI, the creator of ChatGPT, is reportedly in discussions to secure a fresh round of funding that could push its valuation beyond $100 billion, according to sources cited by The Wall Street Journal.
New York-based venture capital firm, Thrive Capital, is expected to lead the round, with an investment of approximately $1 billion.
The San Francisco-based AI start-up was last valued at $86 billion, with significant backing from major investors including Microsoft, Khosla Ventures, Infosys, and Y Combinator. Microsoft, which has been OpenAI’s largest backer since the viral success of ChatGPT in 2022, is also expected to participate in this latest funding effort.
Microsoft has played a critical role in OpenAI’s expansion, committing billions of dollars in investments and integrating OpenAI’s models into its own products, such as Bing and Copilot. However, in a surprising move last month, Microsoft relinquished its observer seat on OpenAI’s board, citing the AI start-up’s “significant progress” as the reason it no longer needed the seat. This decision comes amid increased antitrust scrutiny in the U.S. regarding Microsoft’s close ties with OpenAI.
Founded in 2015 by prominent figures including Sam Altman and Elon Musk, OpenAI has spearheaded the global race to develop advanced generative AI models. ChatGPT, launched to the public in November 2022, was the catalyst to the start-up’s rapid growth and spurred a wave of AI innovation worldwide.
ChatGPT, now on its fourth version, GPT-4, has seen its userbase grow over the years, with numbers recently surpassing 200 million.
Despite its success, OpenAI has faced leadership changes in recent months. Co-founder John Schulman departed in August to join rival AI firm Anthropic, following in the footsteps of former OpenAI executive Jan Leike, who left the company in May, also to Anthropic.
