Artificial Intelligence (AI) firm OpenAI is reportedly in talks to raise capital in new funding that could see its valuation soar above $100 billion. The new funding is expected to draw participants from top companies and venture capital firms.
New Funding for OpenAI
OpenAI is reportedly seeking new funding which could take its valuation up to $100 billion. According to a Wall Street Journal report, the firm could raise approximately billions, citing people familiar with the matter. VC firm Thrive Capital is expected to lead the round, drawing participants from larger firms like tech giant Microsoft. OpenAI was valued at $86 billion last year as its staff sold shares. This widespread adoption and AI frenzy saw growth as OpenAI’s valuation stood at $29 billion the previous year with present revenues above $2 billion. With Thrive Capital expected to bring in $1 billion, alongside major firms, this is expected to be the largest funding round since news of Microsoft’s $10 billion investment in January 2023. Some shareholders are negotiating to sell their stake in the company at a price that could see its valuation top $103 billion.
Impact on AI Coins
The buzz around AI companies has sparked movements in the crypto space, especially with the activities of top firms. In Q1 2024, AI coins soared following the wider market upturn after the approval of a spot Bitcoin ETF by the United States Securities and Exchange Commission (SEC). Despite the recent correction, most users have pointed to possible highs on the back of positive developers. AI chip manufacturer Nvidia announced better-than-expected Q2 earnings, leading to wider speculations.
Recent OpenAI Updates
The company continues to thrill users with new product updates. Recently, OpenAI announced a major update that lets developers customize GPT-4 with specific data sets. The upgrade will enhance the performance of the model while reducing costs.
New developments and funding continue to support the rapid growth of OpenAI, generating enthusiasm among users and significant impact on related AI cryptocurrencies.
Comments