Openai, the company at the center of the artificial intelligence (AI) revolution, is reportedly seeking to raise $6.5 billion from investors, reaching a valuation of $150 billion. According to Bloomberg, the funds would be used to support the need for computing power and other expenses, as stated in a memo sent to employees last month.
AI Powerhouse Openai Reportedly Seeking to Raise $6.5 Billion at a $150 Billion Valuation
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AI Pioneer Openai Seeks to Raise $6.5 Billion in Funding to Expand Computing Power Needs
Openai, one of the companies leading the artificial intelligence (AI) industry, is raising money to expand its computing power needs. According to Bloomberg, the company is seeking to raise $6.5 billion from its investors at a $150 billion valuation, making it one of the most valuable startups in the world.
This valuation would be higher than the $86 billion reported when the company issued a tender offer for employees to sell stakes and higher than the $100 billion reported in August. The investment round would be led by Thrive Capital, with the participation of Microsoft. Apple and Nvidia, two tech behemoths, would also be in talks to participate.
In addition, Openai would be seeking to establish a credit facility of $5 billion with banks, which could mean that some of these bank’s executives might be getting roles at the company.
This financing push comes as the company has recognized that to reach its goal of creating artificial general intelligence (AGI) – meaning that the tools using it can have performance equal or superior to humans in a wide array of tasks – would take far more resources than what they calculated.
The company’s for-profit turn has been questioned by Elon Musk, one of the angel benefactors of the company, who declared that Openai had betrayed its initial purpose with these moves. Musk filed a lawsuit against the company in February alleging that the company launched its Chatgpt chatbot as a Microsoft product. This lawsuit was dismissed by Musk in June only to be revived in August.
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