OpenAI nears record $100B+ funding round at $850B valuation

What's the deal? OpenAI is close to finalising a record-breaking funding round expected to exceed $100 billion. The ChatGPT maker's valuation could top $850 billion — higher than the $830 billion initially expected.

Strategic investors anchor the first phase. Amazon is set to invest up to $50 billion, SoftBank up to $30 billion, Nvidia $20 billion, and Microsoft is also participating.

A second phase will open to venture capital firms, sovereign wealth funds, and other financial investors. This could push the total substantially higher.

Why now? OpenAI is preparing to spend trillions on infrastructure to develop its AI tools.

Strategic investors are expected to finalise allocations by month's end. The money will arrive in tranches throughout the year.

What could go wrong? The deal is not yet finalised and details could change.

Amazon's investment comes with conditions — OpenAI is expected to expand its use of Amazon's chips and cloud services.

The signal: This round reflects the enormous capital AI leaders need to compete. SoftBank's shares rose 4% on the news in Tokyo, signalling investor appetite for AI exposure.

The deal would cement OpenAI as the world's most valuable startup. It shows Big Tech's determination to control AI's future through strategic investments.

Sources:
Bloomberg TV
Bloomberg

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