**OpenAI Eyes Massive Funding Boost**

OpenAI, the AI startup behind ChatGPT, is reportedly in talks to raise significant capital, potentially valuing the firm at over $100 billion. Thrive Capital is set to invest $1 billion, with Microsoft also expected to contribute. This would be the largest funding round since Microsoft's $10 billion investment in January 2023.

Microsoft currently holds a 49% stake in OpenAI, having invested $13 billion since 2019. Internal documents suggest that any new investment would value OpenAI at around $103 billion, excluding new funds.

Despite its high valuation, OpenAI faces criticism over its profitability. The firm is running an annualized revenue of $3.4 billion but could lose up to $5 billion in 2024. Tech reporter Ed Zitron has called OpenAI's path to profit "untenable," suggesting it needs unprecedented funding to survive beyond 2026.

OpenAI operates as a nonprofit, with investors putting money into a for-profit subsidiary, OpenAI LP, entitling them to profits once a cap is reached.

The funding talks come amid fierce competition in the AI sector, with Google and Amazon investing heavily in their own AI ventures.