San Francisco, February 20: OpenAI is reportedly in the final stages of securing a historic funding round exceeding USD 100 billion. According to reports from Bloomberg citing sources familiar with the matter, this capital injection could push the valuation of the ChatGPT creator beyond the USD 850 billion mark.

The deal highlights the immense capital requirements of the artificial intelligence sector. While OpenAI continues to lead the market in generative AI adoption, the company is currently navigating a period of high cash burn as it attempts to transition toward sustainable profitability. OpenAI Frontier Platform Launched To Help Enterprises Deploy and Manage AI Agents As ‘Coworkers’.

OpenAI Major Tech Investors Lead the Round

The funding is expected to be led by several of the world’s most prominent technology firms. Amazon is reportedly in discussions to invest up to USD 50 billion, while SoftBank is preparing a contribution of approximately USD 30 billion. Additionally, Nvidia is said to be nearing a USD 20 billion commitment, with Microsoft also expected to participate.

While these initial tranches come from corporate partners, venture capital firms and sovereign wealth funds are anticipated to join the round at a later stage. These additional contributions could potentially drive the final total even higher than the currently projected USD 100 billion.

OpenAI's Strategic Shift Toward Ad Revenue

To address its financial requirements, OpenAI has recently begun testing advertisements within the free version of ChatGPT. This move represents a significant shift in the company’s business model, aimed at creating a new revenue stream to offset the massive costs associated with computing power and research.

Industry analysts suggest that the introduction of ads is a calculated gamble. While it provides a path to increased revenue, there are concerns regarding user retention if the advertising presence becomes too intrusive. However, the high valuation suggests that investors remain confident in the platform's long-term growth.

OpenAI Valuation and Market Impact

The reported figures indicate that investors now value the company USD 20 billion higher than the previously anticipated USD 830 billion. Despite the increase in the total deal size, the pre-money valuation of the company is expected to remain steady at approximately USD 730 billion. SpaceX and xAI Integration: Elon Musk Unifies Empire in USD 1.25 Trillion Merger To Launch ‘Orbital Data Centres’ in Space.

This massive influx of capital will likely be used to further develop OpenAI’s next-generation models and expand its global infrastructure. The scale of this investment underscores the intense competition in the AI industry as companies race to achieve more advanced reasoning and autonomous capabilities.

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