OpenAI is pursuing a landmark fundraising round that would value the artificial intelligence startup at $150 billion, positioning it among the world’s most valuable private companies and surpassing the market capitalization of over 88% of S&P 500 firms, including financial giants like Goldman Sachs, Uber, and BlackRock.
According to Bloomberg reports citing sources familiar with the matter, the ChatGPT maker is in talks to raise $6.5 billion from various investors, with the $150 billion valuation excluding the new investment amount. Additionally, OpenAI is seeking $5 billion in debt financing, bringing the total capital raise to over $11 billion.
This represents a dramatic 74% increase from OpenAI’s previous $86 billion valuation established in February 2024, when the company allowed employees to sell stakes through a tender offer. The valuation leap underscores the explosive growth and market confidence in OpenAI’s position as the leading AI company amid intensifying competition.
The funding round will be led by Thrive Capital, the New York-based venture firm founded by Josh Kushner, known for early investments in high-profile startups including Instagram, Stripe, Robinhood, Spotify, and Slack. Notably, Microsoft—OpenAI’s partner since 2019—along with Apple and Nvidia are also in discussions to participate in the funding round, highlighting the strategic importance major tech players place on AI development.
Despite its unconventional corporate structure—a nonprofit organization partnered with a capped-profit subsidiary—OpenAI has established itself as the dominant force in the AI industry. The company’s ChatGPT platform has revolutionized public interaction with artificial intelligence and sparked a global race among tech companies to develop competitive AI products.
In a memo to employees last month, OpenAI CFO Sarah Friar outlined that the raised capital would fund computing power and other operating expenses. The memo also revealed plans for a tender offer later in 2024, allowing employees to sell shares at a fixed price during a limited timeframe—a common practice for high-value private companies that choose to remain private rather than pursue an initial public offering.
OpenAI now joins an elite group of “super unicorns” valued higher than most publicly-traded companies, including Elon Musk’s SpaceX (valued at $210 billion), ByteDance ($286 billion), and Stripe ($70 billion).
Key Quotes
The money raised will be used for computing power and other operating costs
OpenAI CFO Sarah Friar explained the purpose of the funding in a memo to employees, highlighting the massive infrastructure costs required to train and operate advanced AI models at scale.
The startup is planning to allow employees to sell some of their shares in a tender offer later this year
This statement from Friar’s memo indicates OpenAI’s commitment to providing liquidity for employees while remaining private, a strategy that helps retain talent by allowing them to realize financial gains without requiring an IPO.
Our Take
OpenAI’s astronomical valuation reflects both genuine technological achievement and speculative fervor around AI’s potential. While the company has undeniably pioneered accessible AI through ChatGPT, the $150 billion price tag raises questions about sustainability and profitability. The involvement of Microsoft, Apple, and Nvidia suggests this is as much about strategic positioning as financial returns—these companies recognize that controlling or partnering with leading AI platforms is essential for future competitiveness. However, OpenAI’s unconventional nonprofit-capped profit structure creates unique governance challenges that could complicate future decision-making as financial stakes grow. The massive capital requirements for AI development are creating a “rich get richer” dynamic, where only well-funded players can compete at the frontier, potentially limiting innovation diversity in the long term.
Why This Matters
This funding round represents a watershed moment for the AI industry, demonstrating unprecedented investor confidence in artificial intelligence as a transformative technology. OpenAI’s $150 billion valuation—achieved in less than two years since ChatGPT’s public launch—signals that AI has moved from experimental technology to a fundamental pillar of the global economy.
The participation of tech giants like Microsoft, Apple, and Nvidia underscores the strategic imperative for established companies to maintain stakes in leading AI platforms. This consolidation of capital and resources around OpenAI could accelerate AI development while potentially widening the gap between well-funded leaders and smaller competitors.
For businesses and workers, this massive investment indicates that AI transformation is accelerating, not slowing down. Companies across industries will face increasing pressure to integrate AI capabilities, while the technology’s rapid advancement will continue reshaping job markets and skill requirements. The funding also ensures OpenAI can afford the enormous computing infrastructure needed for next-generation AI models, potentially leading to more powerful and capable systems that will further disrupt traditional business models and workflows.
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