OpenAI Seeks Major Funding Boost, Aiming for $100 Billion Valuation

OpenAI is seeking a major capital infusion that could push its valuation beyond $100 billion, according to recent reports.

The company is negotiating with venture capital firms for what would be its largest funding round in over a year.

Thrive Capital is set to invest $1 billion, with Microsoft also expected to contribute. This funding round would follow Microsoft’s $10 billion investment in January 2023, raising its stake in OpenAI to 49%. Overall, Microsoft has invested $13 billion in OpenAI since 2019.

Internal documents suggest that the new investment could value OpenAI at approximately $103 billion. Previously, in February, OpenAI’s shares were privately valued at around $86 billion.

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Despite attracting substantial investments, OpenAI’s financial health is under scrutiny. The company generates about $3.4 billion annually but faces criticism over its long-term profitability.

Concerns have been raised that OpenAI may need significant additional funding to remain viable beyond 2026, with projections indicating potential losses of up to $5 billion in 2024.

Investors are backing OpenAI’s for-profit subsidiary, OpenAI LP, while the organization itself remains a nonprofit. This news comes as competition in the AI industry heats up, with major players like Google, Amazon, and Meta investing heavily in their own AI technologies.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.