OpenAI Nears $100 Billion Funding Round at $850 Billion Valuation

OpenAI is reported to be close to finalising the first phase of a new funding round that could raise more than $100 billion, valuing the company at over $850 billion including fresh capital, as per Bloomberg report. 

Funding Round Structure and Valuation Details 

The proposed transaction is expected to raise more than $100 billion in its initial phase. Reports indicate that the company could be valued at over $850 billion post money, with a pre-money valuation estimated at around $730 billion. The first tranche is likely to be backed primarily by strategic investors. 

Among the key participants are Amazon, SoftBank, Nvidia, and Microsoft. If commitments materialise near the upper end of the discussed ranges, their combined investment could approach $100 billion in this phase. 

Reported Investment Commitments 

According to the report, Amazon could invest up to $50 billion as part of the round. SoftBank has been linked with a potential commitment of up to $30 billion, while Nvidia has discussed an investment of up to $20 billion. Corporate contributions are expected to be deployed in tranches during the year. 

The second phase of the fundraising is anticipated to include venture capital firms, sovereign wealth funds and other financial investors. This subsequent stage could increase the total capital raised beyond the initial $100 billion. 

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Commercial Arrangements Linked to the Deal 

As part of its reported partnership with Amazon, OpenAI is expected to expand its use of Amazon chips and cloud infrastructure services.  

The commercial arrangement may align investment participation with operational collaboration in cloud computing and artificial intelligence infrastructure. 

Conclusion 

The proposed funding round, valued at more than $100 billion in its first phase, positions OpenAI at a reported valuation exceeding $850 billion. With participation from major technology companies and the possibility of additional investors in later stages, the transaction represents a significant capital-raising event in the global technology sector. 

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