After having breached the $100Bn valuation mark in funding speculations, OpenAI is now reportedly in advanced discussions to raise approximately $6.5 billion in new equity funding. If successful, this funding round would push the company’s valuation to a total of $150 billion, which could solidify its place as one of the most valuable startups in the world. According to sources familiar with the matter, OpenAI is also negotiating a separate $5 billion revolving credit facility from banks.
This potential $150 billion valuation represents a significant jump from OpenAI’s previous valuation of $86 billion, which was established earlier this year during a tender offer. OpenAI’s rapid growth in value is largely attributed to the success of its AI-driven products, especially ChatGPT, which revolutionized natural language processing and became a symbol of the capabilities of AI in generating human-like responses from text prompts.
The proposed $6.5 billion equity raise and the $5 billion in debt financing are expected to support OpenAI’s growth plans. According to an internal memo reportedly issued by Chief Financial Officer Sarah Friar, part of the new funding will be allocated toward computing power and other operational expenses. Furthermore, the memo indicated that the company is preparing to offer employees the opportunity to sell shares in a tender offer later this year, a move that could help retain top talent and provide liquidity for early employees.
Sources indicate that Thrive Capital, a prominent investment firm that has supported OpenAI in previous rounds, will lead this latest fundraising effort. Thrive’s involvement is seen as a key endorsement of OpenAI’s long-term potential. Microsoft, the company’s largest investor, is also expected to participate in the round. Since 2019, Microsoft has invested approximately $13 billion in OpenAI, providing critical financial and cloud infrastructure support for its AI projects. Tech heavyweights like Apple and Nvidia are reportedly in talks to join this new funding round as well.
In addition to the equity fundraising, OpenAI is seeking a $5 billion revolving credit facility from banks, a move commonly seen among tech startups preparing for significant expansion or public offerings. This form of flexible credit allows companies to draw funds as needed, repay them, and then borrow again. Historically, this strategy has been used by major tech firms like Meta (formerly Facebook), Alibaba, Uber, and DoorDash as they prepared for IPOs or large-scale operations.
While OpenAI has not indicated any immediate plans to go public, securing such a credit facility could be a preparatory step for an eventual IPO. Banks involved in these kinds of credit agreements often secure roles as underwriters in future public offerings, ensuring that the relationship between the company and its financial backers strengthens over time. The added financial resources would allow OpenAI to maintain its investments in computational infrastructure and research as well.
Founded in 2015, OpenAI has rapidly grown into one of the leading forces in the AI industry. The launch of ChatGPT in 2022 catapulted the company to global prominence, sparking widespread interest in AI’s potential for both consumer applications and enterprise solutions. Last year, the company briefly ousted CEO Sam Altman before reinstating him, and since then, it has undergone significant changes to its leadership structure. Most of the original founding team has departed, and the company’s board of directors has been reshuffled to align with its evolving goals.
