Sept 11 (Askume) – Artificial intelligence giant OpenAI is in talks to raise capital at a valuation of $150 billion, a move that would solidify its position as one of the world’s biggest startups, Bloomberg reported on Wednesday.
The maker of the viral chatbot ChatGPIT is in discussions to raise $6.5 billion from investors and is discussing borrowing $5 billion from banks in the form of a revolving credit facility, the report said, citing people familiar with the matter.
OpenAI’s new valuation would be 74% higher than the $86 billion it received in a tender offer earlier this year.
The company did not immediately respond to a Askume request for comment, while Thrive Capital, which Bloomberg News previously said would lead the financing, also declined to comment.
The excitement generated by ChatGPT has made OpenAI one of the biggest players in the artificial intelligence industry.
The company , led by Sam Altman and backed by tech giant Microsoft MSFT.O , has revived Silicon Valley’s interest in the sector.
Private equity marketplace Forge Global Holdings (FRGE.N) on Wednesday added OpenAI to its “Private Seven” list of startups.
The Big Seven is a group of publicly traded giant stocks, including Microsoft, Apple (AAPL.O) , Google parent Alphabet (GOOGL.O) , Tesla (TSLA.O) and others.
The latest capital investment will keep OpenAI private for the long term.Most ambitious startups shy away from going public due to regulatory costs and stock market volatility .
Other sources of capital, such as private equity firms and funds such as Destiny Tech100 (DXYZ.N) and ARK Venture Fund (ARKVX.O), also make IPOs less attractive.
But investors enjoy the liquidity provided by the public markets. “Venture capitalists need some liquidity, and the way they get liquidity is by companies selling themselves or going public,” said Chelsea Childs, a partner at law firm Ropes & Gray.
