OpenAI has been among the news in the last week or so, and it seems it will continue to do so. In our previous report, we mentioned that OpenAI is bringing ChatGPT assistive search and recommendation features inside Jio Hotstar. This one is more of a funding-related news.
Major tech giants line up for OpenAI investment
OpenAI is reportedly closing in on one of the biggest funding rounds in tech history. The news comes via Bloomberg, which, without citing the source name, has reported that the company could raise over $100 billion at a valuation exceeding $850 billion.
The massive investment push comes at a time when the ChatGPT maker is looking towards profitability and navigating growing competition in the generative AI space. If the funding round is closed as expected. OpenAI will be valued $20 billion higher than an earlier expectation of around $830 billion. That said, the news outlet has also reported that despite the valuation, OpenAI’s pre-money valuation will stay somewhere around $730 billion.
Per the report, multiple tech giants are lining up to participate in the funding round. Some of the biggest names include Amazon, SoftBank Group, NVIDIA, and Microsoft. Bloomberg sources further say that Amazon is in discussion to invest up to $50 billion, while SoftBank Group is ready to pour in nearly $30 billion. Nvidia, on the other hand, is set to be close to a $20 billion investment. Microsoft, who is already a key partner, is expected to take part in the funding round. However, the amount hasn’t been disclosed yet.
Besides tech giants, venture capital firms and sovereign wealth funds are also expected to join the funding round in later tranches, which will potentially push the total raised valuation well beyond the initial $100 billion figure. If everything goes as planned, OpenAI will emerge as one of the most capital-heavy private companies ever.
Financial challenges amid massive funding
Well, it’s true that the company is attracting big investments from some of the major tech giants. But, its financial footing isn’t without challenges. The company has recently acknowledged that it is still burning through cash as it scales its operations and develops next-generation models. Speaking of models, the company recently dropped GPT-5.3-Codex, moments after Anthropic released its Claude Opus 4.6.
Since we are on the Anthropic and OpenAI topic, let’s not forget that Anthropic also took a jab at OpenAI for its ad rollout through a Super Bowl ad, which Sam Altman dismissed by saying the campaign was dishonest. With such monumental sums on the table, one of the biggest questions for OpenAI is whether this new capital will help OpenAI outpace its competitors or simply raise the stakes for every AI contender in the market. That’s something only time will tell.
