OpenAI reportedly in discussions to secure new funding round with a valuation of over $100 billion

ChatGPT creator OpenAI is reportedly in talks to raise a substantial amount of funding led by previous investor Thrive Capital, with a valuation exceeding $100 billion. This valuation is significantly higher than OpenAI's previous valuation of $86 billion, making it the highest valuation for any AI startup to date.

Thrive Capital is said to be contributing around $1 billion to this round. Microsoft is also expected to participate, as reported by the WSJ. Other existing investors of OpenAI include Khosla Ventures, Infosys, and Y Combinator.

This funding round is set to be OpenAI's largest external funding since January 2023, when Microsoft invested close to $10 billion.

According to reports, OpenAI's annual revenue surpassed $3.4 billion earlier this year. However, The Information states that OpenAI is projected to have a loss of almost $5 billion by the end of the year, having already spent $8.5 billion on AI training and staff expenses.