ChatGPT Creator OpenAI is in discussions to raise more capital valued at $100 billion.

According to persons with knowledge of the situation, OpenAI is in early talks to seek a new round of investment with a value of at least $100 billion. If successful, this would establish the company as one of the most valuable companies in the world, along with ChatGPT. Those who requested not to be named to discuss private affairs claim that investors who may be engaged in the fundraising round have been included in preliminary conversations. According to the persons, there is still room for adjustment regarding the conditions, value, and timing of the investment round, which have not yet been finalized.

According to CB Insights statistics, if the investment deal proceeds as expected, the artificial intelligence darling would become the second most valuable company in the US, only surpassed by Elon Musk's Space Exploration Technologies.

According to a recent report by Bloomberg, the business is scheduled to conclude a secondary tender offer in early January, enabling its workers to sell their shares at a price of $86 billion. Thrive Capital is leading that, and according to sources with knowledge of the situation, there was a higher demand from investors than there was supply.

The artificial intelligence craze that OpenAI sparked a year ago with the release of ChatGPT—a chatbot that could write astonishingly human phrases and even poetry—and its skyrocketing price are related. Within a few months, the business transformed the tech industry landscape by becoming Silicon Valley's hottest startup and receiving $13 billion to date from Microsoft. This led to a renewed respect for the potential of artificial intelligence.

Since then, billions have been invested by Alphabet and Amazon.com in OpenAI competitor Anthropic. Hugging Face received a $4.5 billion investment from Salesforce, while Nvidia, a manufacturer of many of the chips used in AI applications, said earlier this month that it had committed to more than two dozen investments in 2023.

According to persons with knowledge of the situation, OpenAI has also had negotiations with G42, located in Abu Dhabi, to seek money for a new chip business. Those who sought anonymity to discuss sensitive material indicated that the firm has spoken about funding between $8 billion and $10 billion from G42. It's unclear how the company's broader finance efforts and the chips endeavor are connected.

Sam Altman, the chief executive officer of OpenAI, has been looking for funding for the Tigris chip project. As Bloomberg News reported last month, the objective is to create semiconductors that can rival those made by Nvidia, which now controls the majority of the AI chip industry.

G42 and OpenAI announced their collaboration in October with the goal of "delivering cutting-edge AI solutions to the UAE and regional markets." There were no financial data given. The national security adviser and leader of the Abu Dhabi Investment Authority for the United Arab Emirates, Sheikh Tahnoon bin Zayed Al Nahyan, is in charge of the 2018-founded company.

After Altman was abruptly sacked by OpenAI's board earlier this month, the company's future was momentarily unclear. Several investors thought about writing down their interests to zero at the moment. However, after five days of turmoil in the leadership, Altman was reinstated and a new board was appointed. The firm wants to convey to its clientele that, in the wake of the disruption, it is focused on its goods.