OpenAI is reportedly on the brink of securing a monumental funding round, potentially elevating its valuation to over $100 billion. According to recent reports by The Wall Street Journal, investors are eager to get a stake in the AI powerhouse, demonstrating their willingness to value the company at this impressive height.
Current negotiations suggest that Thrive Capital, led by Josh Kushner, could lead the round with a substantial $1 billion investment. Additionally, tech giants such as Microsoft, Nvidia, and Apple are rumored to be involved, reflecting a significant leap from OpenAI’s previous valuation of $86 billion. This valuation was set during a secondary sale of existing shares in September, as reported by Bloomberg.
Investor enthusiasm has been palpable, with Rainmaker Securities observing bids that push OpenAI's value up to $143 billion. Similarly, Caplight, a secondary market data platform, estimates the company's worth at over $111 billion. “There’s an incredible demand to be part of OpenAI’s journey,” Glen Anderson, co-founder of Rainmaker Securities, shared. “A $100 billion valuation might seem steep, but if OpenAI meets its potential, it could be a bargain.”
The rapid ascent in OpenAI’s valuation parallels its revenue growth. Despite still operating at a loss, the company has transitioned from zero revenue a few years ago to an anticipated $2 billion in annual recurring revenue by year’s end, as reported by The Information. Greg Martin, co-founder of Rainmaker Securities, highlighted that while precise valuation remains challenging, the strong demand signals a potential for future growth. “There’s a real possibility OpenAI could be worth a trillion dollars someday,” Martin noted.
This forthcoming funding round is poised to not only enhance OpenAI’s standing but also influence the broader AI sector. Martin predicts increased secondary market activity for OpenAI and its competitors, such as Anthropic, Cohere, and Hugging Face. “This kind of buzz shifts market expectations and sparks excitement,” Martin concluded.
