OpenAI reportedly finalizing $100B deal at more than $850B valuation

OpenAI is reportedly closing in on a deal to raise more than $100 billion at a valuation that could top $850 billion, Bloomberg reported, citing sources familiar with the matter.

The fundraising push comes as the maker of ChatGPT continues to burn cash while working toward profitability. As part of those efforts, OpenAI has said it has begun testing ads in ChatGPT for free users, a move that could generate new revenue but also carries the risk of pushing users away from the platform.

Even so, Bloomberg’s report suggests investors are still confident, valuing the company roughly $20 billion higher than the $830 billion previously expected. Bloomberg’s source said the company’s pre-money valuation would remain at $730 billion.

The first tranches of capital are reportedly expected to come from major backers, including Amazon — which is already in talks to invest up to $50 billion — SoftBank, which is preparing a $30 billion commitment, Nvidia, which is said to be close to investing $20 billion, and Microsoft. Bloomberg reported that venture capital firms and sovereign wealth funds are expected to join later, potentially pushing the total amount raised even higher.