More details are emerging regarding the ongoing talks between OpenAI and potential participants in its next funding round. According to reports from The Information and Bloomberg , OpenAI is in the final stages of securing a massive funding round, potentially valuing the AI startup at $150 billion. The round, which aims to raise $6.5 billion is reportedly oversubscribed by billions of dollars.
Josh Kushner’s Thrive Capital is leading the round with a commitment of $1.25 billion. Alongside Thrive, major technology firms Microsoft, NVIDIA, and Apple are in advanced discussions to participate, potentially contributing between $2 billion and $3 billion collectively. While the exact nature of these investments remains unclear, they may involve a combination of cash and other resources, such as computing power. Other potential investors mentioned by The Information include Tiger Global Management and Abu Dhabi’s AI investment firm MGX.
To streamline the investor base and maintain a manageable cap table, OpenAI has established a high minimum investment threshold of $250 million per investor. This strategy limits participation to a select group of large investors, ensuring that only a few significant stakeholders are involved. Notifications regarding participation decisions are expected to go out to potential investors by tomorrow.
Interestingly, Sequoia Capital, an early OpenAI backer, is not expected to participate in this round. This development comes after Sequoia’s recent investment in Safe Superintelligence Inc., a startup founded by OpenAI’s former chief scientist Ilya Sutskever, who left the company earlier this year.
This funding push comes as OpenAI reportedly considers transitioning to a more traditional for-profit structure, potentially mirroring competitor Anthropic’s benefit corporation model. This shift could make the company more attractive to a broader range of investors.
The oversubscription of this funding round underscores OpenAI’s prominent and unique position within the AI sector. The company’s valuation has surged from $86 billion in its previous financing to $150 billion.
Chris McKay is the founder and chief editor of Maginative. His thought leadership in AI literacy and strategic AI adoption has been recognized by top academic institutions, media, and global brands. Subscribe to Maginative Plus
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