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. Crypto users assess the potential impact on AI coins amid the market downturn.
OpenAI Seeks New Funding
OpenAI is reportedly seeking new funding which could take its valuation up to $100 billion. A new Wall Street Journal report says the form could raise approximately billions citing people familiar with the matter. According to the report, VC firm Thrive Capital is expected to lead the round drawing participants from larger firms like tech giant Microsoft.
The company behind ChatGPT 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.
Per the report, some shareholders are negotiating to sell their stake in the company at a price that could see its valuation top $103 billion. The company’s growth continues to thrill several users as it adds new upgrades to its products. Recently, OpenAI announced a major update that lets developers customize GPT-40 with specific data sets. The upgrade will enhance the performance of the model while reducing costs.
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 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.
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