Openai, the company at the center of the artificial intelligence (AI) revolution, is reportedly seeking to raise $6.5 billion from investors at a valuation of $150 billion. The money will be used to support its need for computing power and other expenses, according to a memo sent to employees last month, according to Bloomberg.
AI Pioneer Openai Seeks to Raise $6.5 Billion in Funding to Expand Demand for Computing Power
Openai, one of the leaders in the artificial intelligence (AI) industry, is raising money to expand demand for its computing power. According to Bloomberg, the company is seeking to raise $6.5 billion from investors at a valuation of $150 billion, making it one of the world's most valuable startups.
The valuation would be higher than the $86 billion reported when the company issued a tender offer to employees to sell shares, and higher than the $100 billion reported in August. The round will be led by Thrive Capital, with participation from Microsoft. Apple and Nvidia, two tech giants, are also in talks to participate.
Additionally, Openai will seek to establish a $5 billion credit facility with banks, which means some of those banks' executives will likely get roles at the company.
The funding round comes as the company realizes that achieving its goal of creating artificial general intelligence (AGI) — meaning tools that can perform on par with or outperform humans on a wide range of tasks — will require far more resources than it had anticipated.
Elon Musk, one of the company’s angel investors, has questioned the company’s for-profit pivot, claiming that Openai has betrayed its original purpose with these moves. Musk filed a lawsuit against the company in February, alleging that it had marketed its Chatgpt chatbot as a Microsoft product. The lawsuit was dismissed by Musk in June but revived in August.
What do you think about Openai’s reported raise and the company’s valuation? Let us know in the comments below.
#binance #tramnguyen #bitcoin #btc #eth $BTC $ETH $BNB
