AI’s new bullet is coming! Reports say OpenAI is exploring “tens of billions or even $100 billion in financing.”
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OpenAI is brewing an unprecedented round of capital operations, aiming to further consolidate its dominant position in the field of artificial intelligence through financing reaching tens of billions or even one hundred billion dollars, and to supplement the high costs of model training.
According to The Information, citing three people familiar with the matter, OpenAI has discussed a valuation of about $750 billion in recent contacts with investors. Two of the sources said that the size of this round of financing could reach tens of billions of dollars, or possibly up to $100 billion. The relevant negotiations are still in the early stages, and no final terms have been settled.
This indicates that while spending large amounts of capital to train and run AI models, this startup is actively seeking to further expand its already considerable cash reserves.
If the financing is completed at this valuation, it would be about 50% higher than the valuation of OpenAI's most recent stock sale in October last year, and would further bolster its financial reserves for training and running AI models. In addition to having raised over $60 billion from investors such as Thrive Capital and SoftBank, OpenAI has also begun laying the groundwork for new financing.
Meanwhile, Amazon is also in deep talks with OpenAI. Reports indicate Amazon is negotiating to invest at least $10 billion in OpenAI.
Wallstreetcn previously mentioned that as a key part of the deal, OpenAI will agree to use Amazon’s self-developed Trainium chips. Previously, OpenAI had announced it would spend $38 billion over the next seven years to rent Amazon Web Services (AWS) servers, and the proposed investment would directly fund this rental commitment. If the deal goes through, Amazon will join the ranks of tech giants including Nvidia as a heavyweight investor in OpenAI’s latest round.
This series of financing events highlights the increasingly fierce and expensive arms race in generative AI. For investors, if OpenAI succeeds in bringing in strategic allies such as Amazon and diversifying its chip supply chain, it not only means a significant expansion of its cash reserves, but also suggests that the competition among Silicon Valley giants over computing power, exclusive agreements, and market share is becoming even more complex.
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