OpenAI is reportedly trying to raise $100B at an $830B valuation

OpenAI is in talks to raise up to $100 billion in a funding round that could value the ChatGPT maker at up to $830 billion, The Wall Street Journal reported Thursday

The company aims to raise the funding by the end of the first quarter of next year, and it could ask sovereign wealth funds to invest in the round, the WSJ reported. The information first reported news of the deal, although it was said that the fundraising would give OpenAI a price tag of $750 billion.

And strikes offers all around the world as the company tries to stay ahead in the race to develop AI technology. The cash injection would also help the company with its inference spending, it seems are financed more with cash than with cloud creditsindicating that the company’s computing costs have grown beyond what partnerships and credits can subsidize.

And as competition increases from rivals such as Anthropic And Googling step on the gas to release new models and expand its presence in the developer and tool ecosystem.

Meanwhile, broader sentiment around AI has cooled down recently as investors begin to doubt whether the pace of debt-fueled investment by giants like Amazon, Microsoft, Oracle and OpenAI itself can be sustained in the long term. It also doesn’t help that chip production is getting underway limited due to shortages in the supply of memory chips, which threaten to hit the broader technology sector.

There are also rumors that OpenAI is working on one IPO as a way to raise tens of billions and finance development efforts, as currently claimed generate annual run-rate sales of approximately $20 billion. There are also rumors that the company is Courting Amazon for a $10 billion investment that would also give the AI ​​lab access to the tech giant’s new AI computer chips.

If the fundraising takes place, it would add a substantial amount to OpenAI’s coffers, which currently have more than $64 billion, according to PitchBook facts. The company was recently valued at approximately $500 billion a secondary transaction.

OpenAI did not immediately return a request for comment.