In related news OpenAI is said to be on the cusp of closing a giant funding round, which may value them at more than $100 billion. This huge wave of financial muscle is sure to boost the company’s market cap back over the $850 billion threshold. That’s a huge increase from the original $830 billion estimate. The $700 million funding round has drawn the attention of big name partners like Amazon, SoftBank, Nvidia and Microsoft.
OpenAI’s pre-money valuation will hold at $730 billion as negotiations continue. Sources familiar with the matter indicate that Amazon is in discussions to invest as much as $50 billion in the artificial intelligence company. This huge infusion of capital highlights Amazon’s belief in the long term of its AI technology ambitions.
Beyond Amazon’s expected $10 billion investment, it looks like SoftBank is willing to drop $30 billion on OpenAI. This unprecedented amount of investment is indicative of SoftBank’s ongoing strategy to strengthen its portfolio in key areas across the tech landscape, especially with AI-driven technologies. Nvidia, another key player in the technology landscape, is reportedly close to finalizing a $20 billion investment in OpenAI, further solidifying the company’s position in the AI market.
Previously a partner of OpenAI, tech giant Microsoft is rumored to be injecting even more money in this most recent round. Their continued work together has already resulted in meaningful progress for real world AI applications and with additional investment will surely make future efforts more impactful.
The funding opportunity has drawn some major national interest — in part because of its size. Investors today are valuing OpenAI at $20 billion more than previously expected. This represents a tremendous vote of confidence in the company’s future direction from the markets. According to Bloomberg’s Kylie Robison, OpenAI’s new funding round is on track to surpass $100 billion. This milestone makes it one of the biggest funding rounds ever recorded in the tech industry.
OpenAI, meanwhile, is preparing for a $250 billion infusion on their balance sheet. Industry experts are counting on this influx to have a significant influence in leveling up the broader AI ecosystem. Crossing through an $850 billion valuation would flip the market order and potentially change the landscape. It would further establish a precedent for technology companies that focus primarily on artificial intelligence.