OpenAI is reportedly in discussions to raise $6.5 billion from investors, potentially boosting its valuation to $150 billion, according to Bloomberg. This is a significant increase compared to the $86 billion valuation achieved during its share buyback offer earlier this year.
$5 Billion Credit Line Under Negotiation
In parallel, OpenAI is exploring a $5 billion revolving credit line with banks. This type of loan works similarly to a credit card for consumers, allowing the company to borrow funds repeatedly without fully repaying existing debt. Sources familiar with the matter have noted that negotiations are still ongoing and the terms may change. OpenAI has not commented on the information at this time, notes NIX Solutions.
Key Investors and Industry Trend
The upcoming funding round is expected to be led by Thrive Capital, with participation from Microsoft, OpenAI’s largest investor. Apple and Nvidia are also in talks to invest. The startup is following a common path for tech companies, as major firms like Facebook, Alibaba, Uber, and DoorDash have used revolving credit lines prior to going public. Last month, reports indicated that OpenAI’s valuation had already climbed to $100 billion amid ongoing negotiations.
We’ll keep you updated on any further developments.