OpenAI Nears Record $100 Billion Valuation in Thrive Capital-Led Funding Round

OpenAI is edging closer to securing funding amounting to a valuation exceeding $100 billion in a funding round spearheaded by Thrive Capital, according to insiders familiar with the situation. Thrive is anticipated to inject approximately $1 billion into the round, as per an undisclosed source due to the fundraising not being publicized yet. Sarah Friar, the CFO of OpenAI, communicated to staff through a memo about the company’s pursuit of fresh capital, withholding specific details, as noted by those well-versed with the matter. Discussions concerning OpenAI’s fundraising efforts at a valuation equal to or surpassing $100 billion have been ongoing since at least December, as disclosed by sources from late last year. This funding endeavor is poised to position OpenAI as one of the most valuable venture-backed startups globally, highlighting the increasing demand for generative artificial intelligence software following the attention garnered by OpenAI’s user-friendly chatbot, ChatGPT. The success of OpenAI, supported by Microsoft Corp., has catalyzed a competitive environment among major tech companies, leading to the integration of AI technology across their offerings and investments in promising startups. In her message to employees, Friar indicated that the funding will cater to the company’s requirements for computational resources and operational expenses, as relayed by insiders. Additionally, OpenAI’s CFO mentioned plans to organize a tender event where employees can potentially divest some of their shares later this year. Friar emphasized that these deliberations are in preliminary stages, and finalized details are pending confirmation. The intention of Thrive Capital to invest was previously reported by the Wall Street Journal.