Endorsing AI trading! OpenAI is finalizing a new round of financing: raising up to $100 billion at a valuation of $830 billion.

OpenAI is finalizing a new round of fundraising, which may raise $100 billion, and after completion, the company’s valuation will reach $830 billion. According to The Information citing insiders, SoftBank is expected to lead this round with an investment of $30 billion, divided into three phases throughout the year, each phase $10 billion. Amazon, which provides cloud services to OpenAI, may invest up to $50 billion, Nvidia—OpenAI's model chip supplier—may invest up to $30 billion, and long-term partner Microsoft may invest several billion dollars. These investments are expected to help the company achieve its $100 billion fundraising goal, which means additional investments from venture capital funds and other financial institutions may push the total financing amount above this figure. However, The Information also cites another source, saying it is unclear if strategic investors will add more funds, and negotiations are ongoing. According to The Information, after securing the first batch of investment commitments, OpenAI is also seeking support from financial investors. One insider said OpenAI executives are in communication with current investors Thrive Capital, Khosla Ventures, Founders Fund, and Sequoia Capital regarding this round of fundraising. It is not clear whether these investors will increase their investment or how much they will invest. The report states that two insiders have revealed that investors participating in OpenAI’s latest round (referred to as the "C round") will receive preferred shares, which will convert to Class A common shares upon company exit (such as an IPO). Insiders also indicated investors will get 1x liquidation preference, a standard term designed to ensure that investors recoup their entire investment if the company is sold. First round of fundraising after restructuring paves the way for IPO This round marks OpenAI’s first fundraising since the company’s restructuring last fall, which enabled the company to issue standard equity and is a key step towards an IPO. According to media citing an insider, executives have already discussed going public as early as the fourth quarter. Before this round, OpenAI had raised about $61 billion from investors including Microsoft, Thrive, and SoftBank. Last fall, the company sold shares held by employees and other shareholders at a $500 billion valuation. Massive fundraising to cope with astronomical spending OpenAI launched this massive fundraising in anticipation of soaring costs for AI operations and training. According to media citing insiders, last summer the company predicted that from 2025 to 2030, the costs for operating and training its AI systems and the backup server expenses to support its growth would reach about $450 billion. The current $830 billion valuation is a substantial jump from last fall’s $500 billion, reflecting major investors' continued enthusiasm for the AI pioneer despite enormous spending pressures. The successful fundraising provides ample financial support for OpenAI’s technology R&D and infrastructure expansion. Risk warning and disclaimer The market involves risks, and investment should be cautious. This article does not constitute personal investment advice and does not consider individual users' special investment goals, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article suit their specific circumstances. Investment based on this is at your own risk.