OpenAI, the company behind the popular AI chatbot ChatGPT, is discussing a new massive funding round that would value the company at over $100 billion according to a recent Bloomberg report. This comes on the heels of their last funding round in 2021 which valued OpenAI at $29 billion.
Key Details of Potential Funding Round
According to sources familiar with the matter, OpenAI is in early stage talks with investors about raising $8-10 billion in fresh funding from Abu Dhabi-based firm G42. This would likely value OpenAI at or above $100 billion.
The terms and timing are not yet finalized and could change, but it shows the ballooning interest in OpenAI and AI technology in general among investors. Separately, OpenAI is also set to close a $300 million tender offer in early January 2023 led by Thrive Capital, which would allow employees to sell shares at an $86 billion valuation.
Additionally, OpenAI has discussed collaborating with G42 on a new AI chip venture. It is unclear if this venture would be tied to the wider Series funding round.
The Rise of OpenAI
OpenAI burst onto the scene in late 2022 with the launch of ChatGPT, a conversational AI bot that can generate human-like text. The accessible chatbot captured public imagination and highlighted the potential of AI to millions overnight.
Microsoft is also continuing to deepen ties with OpenAI, having committed over $10 billion to the company. After OpenAI controversially ousted and reinstated CEO Sam Altman in November 2022, Microsoft secured a non-voting board observer seat to strengthen governance.
With the AI hype cycle in full swing, OpenAI looks to be seizing the moment to raise funding while valuations remain sky-high. The infusion of capital will aid its mission of developing safe and impactful AI applications.
Concerns Around AI Technology
However, OpenAI and ChatGPT have also prompted valid concerns around the societal impacts of synthetic media and advanced natural language processing.
Key issues that need addressing:
- Potential for misuse to spread misinformation
- Bias and unfairness perpetuated by the AI models
- Lack of transparency around how the systems work
- Possibility of job disruption across industries
More guardrails and governance structures may be necessary to ensure AI progress remains aligned with human values and priorities.
The Path Ahead
As AI capabilities advance rapidly, companies like OpenAI now shoulder great responsibility in steering the technology toward positive ends. With its latest funding round, OpenAI seems poised to lead the pack in developing and deploying AI safely. But increased public discourse is vital for setting reasonable expectations and boundaries for AI going forward.
How much funding is OpenAI seeking with this new round?
OpenAI is in talks to raise between $8-10 billion in fresh funding, likely at a valuation of at least $100 billion.
Who is currently investing in OpenAI?
Microsoft has committed over $10 billion to OpenAI. The new Series funding round is being discussed with Abu Dhabi-based firm G42.
What is ChatGPT and why is it important?
ChatGPT is an AI-powered chatbot launched by OpenAI in late 2022. Its ability to generate human-like conversational text showcases the rapid progress of natural language AI.
With great innovation comes great responsibility. As OpenAI continues pushing boundaries in AI research for the benefits of humanity, we must also establish reasonable safeguards and oversight measures around this exponentially powerful technology. Finding the right balance will enable AI to uplift society while mitigating risks.
Damon an avid economist Charles is an expert on global politics and economic pressures that can affect market conditions. He has a Masters Degree in Economics from Westminster University with previous roles including Investment Banking. Mark has over 10 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of his time analyzing earnings reports and watching commodities and derivatives. Damon reports timely updates about Technology sector.