Thrive Capital is set to invest $1 billion in OpenAI, as the company nears a valuation of more than $100 billion amid rising demand for generative AI technology.
OpenAI is nearing a major funding round that would value the company more than $100 billion, with Thrive Capital expected to invest around $1 billion. Sources familiar with the matter have indicated that the fundraising is progressing but has yet to be made public.
Sarah Friar, OpenAI’s CFO, informed employees that the company seeks new capital to cover increasing operational costs and fuel the computing power needed for its AI models. The announcement did not specify exact figures but highlighted the growing need for resources as the company scales.
If the funding round is successful, OpenAI could become one of the world’s most valuable venture-backed startups, underscoring the global demand for generative AI tools like ChatGPT. The rise of OpenAI has also sparked increased competition among tech giants eager to integrate AI into their products.
Friar additionally hinted at plans for a tender event later this year, allowing employees to sell some of their shares. Details of this event are still in the early stages and yet to be confirmed.
OpenAI is getting closer to raising funding at a valuation of more than $100 billion in a round led by Thrive Capital, people with knowledge of the matter said.
Thrive will invest about $1 billion in the round, said one of the people, who asked to remain anonymous because the fundraising hasn’t been made public. OpenAI Chief Financial Officer Sarah Friar told employees in a memo on Wednesday that the company is seeking fresh capital, without giving details, according to people familiar with the matter.
