OpenAI is in talks with major technology companies and sovereign wealth funds in the Middle East about a new investment round of $100 billion. According to sources close to the discussions, if an agreement is reached, the company’s valuation could rise from its current level of approximately $500 billion to $750 billion or higher.
Elchi.az reports that this was reported by The New York Times (NYT).
The negotiations are still in the early stages and the terms may change. Nvidia, Amazon, Microsoft, SoftBank and a number of other investors are participating in them.
OpenAI completed its previous funding round in March and received $40 billion in funding. The last tranche was received at the end of last year.
The company is still operating at a loss and incurring huge costs for computing power for ICT development. OpenAI, which earned approximately $13 billion in revenue last year, expects its revenue to increase several times, but plans to spend $115 billion between 2025 and 2029, while long-term computing infrastructure commitments are valued at $1.4 trillion.
Currently, ChatGPT’s main source of revenue is subscriptions and API sales. The service is used by more than 800 million people, but only about 6% of them pay. The company is also working on an advertising model and ICT solutions for business. In addition, OpenAI is also considering going public this year.
Increasing competition in the ICT market and close cooperation with Microsoft – approximately half of the company’s future commercial agreements will belong to this company – are increasing investors’ and analysts’ attention to the sustainability of OpenAI’s business model.
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