OpenAI's $6.5B funding round oversubscribed, investors await selection
OpenAI, a prominent artificial intelligence (AI) start-up, is nearing the conclusion of its latest fundraising round. The company is set to raise $6.5 billion in this funding round, which has been oversubscribed by investors eager to contribute more than the firm was prepared to accept. This information was reported by Bloomberg, citing individuals familiar with the matter who requested anonymity due to the private nature of the discussions.
Investor interest exceeds OpenAI's funding target
The oversubscription of the funding round indicates a high level of investor interest in OpenAI. According to insiders, the surplus demand for investment opportunities in the company runs into billions of dollars. As a result, some investors will be informed today that they have not been selected to participate in this round. However, OpenAI has not publicly commented on these developments.
Microsoft, NVIDIA, Apple likely to secure investment access
Several strategic investors are expected to secure access to the oversubscribed funding round. These include Microsoft, OpenAI's largest supporter, as well as new investors NVIDIA and Apple. The deal is projected to value OpenAI at a staggering $150 billion, excluding the new investment. This valuation marks a significant increase of around 74% from its previous valuation of $86 billion in an earlier financing deal.
Thrive Capital leads funding round with $1.25B investment
Thrive Capital, an existing investor in OpenAI, is leading the current funding round with a substantial investment of $1.25 billion. However, Sequoia Capital, a notable existing investor in OpenAI, will not be participating in this funding round. The firm recently backed Safe Superintelligence, a rival AI business founded by former OpenAI co-founder Ilya Sutskever. This shift comes after Sutskever left the Sam Altman-led company earlier this year.
