OpenAI wants to raise “several billion dollars”

OpenAI According to reports, the company plans to raise “multiple billion dollars” in a financing round that at over 100 billion dollars.

The round is led from Thrive Capital city and includes the participation of MicrosoftThe Wall Street Journal reported Wednesday (28 August) citing unnamed sources.

OpenAI did not immediately respond to PYMNTS' request for comment.

When employees sold their shares at the end of 2023, OpenAI was valued at $86 billion, according to the report.

The latest funding round comes at a time when competition in the artificial intelligence (AI) space is fiercebut OpenAI's ChatGPT remains the market leader with hundreds of millions of monthly users, the report says.

Staying on the cutting edge of AI requires billions of dollars in investment, the report says. OpenAI has spent more than $100 million building its GPT-4 AI model and is expected to spend even more on the model it is currently developing.

On Tuesday (August 27), it was reported that OpenAI plans to launch its next-generation AI product called “Strawberry” in the fall and that the product will be able to solve problems and tasks that go beyond the capabilities of current AI models.

Strawberry will reportedly be able to solve mathematical problems it has never faced before; perform sophisticated tasks such as developing market strategies and solving complex word puzzles; and conduct “in-depth research.”

In July, it was reported that large investments in AI companies were largely fuels American Venture financing the achieved It is highest quarterly amount in two years.

In the second quarter, venture capital investments totaled $55.6 billion, a 47 percent increase from the $37.8 billion invested by startups in the U.S. in the first quarter.

Investments in AI companies that contributed to this growth included the $6 billion that Elon Musk’s xAI and $1.1 billion raised through Core tissue.

On 5 August Groq has raised $640 million in a Series D Financing round to scale the capacity of its vertically integrated AI inference platform. The company said it will also use the new funding to add talent, accelerate development of the next generation of language processing units (LPUs), and add new models and features to GroqCloud.

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