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 financing, this round may raise $100 billion, and after the financing is completed, the company's valuation will reach $830 billion.

According to The Information citing informed sources, SoftBank is expected to lead this round with an investment of $30 billion, which will be distributed in three phases within the year, with $10 billion in each phase. Amazon, which provides cloud services to OpenAI, may invest up to $50 billion, while NVIDIA, the supplier of OpenAI's model chips, may contribute up to $30 billion, and long-term partner Microsoft may invest around several billion dollars.

These investments are expected to help the company achieve its $100 billion financing goal, which means that additional investments from venture capital funds and other financial institutions may push the total amount of this round of financing beyond this figure. However, according to The Information citing another informed source, it is currently unclear whether strategic investors will add more funds, and relevant negotiations are still ongoing.

According to The Information citing informed sources, after receiving the first batch of investment commitments, OpenAI is also seeking support from financial investors. One informed source stated that OpenAI executives have been communicating with existing investors Thrive Capital, Khosla Ventures, Founders Fund, and Sequoia Capital, as well as other investors regarding this round of financing. It is currently unclear whether these investors will add more investments and what the investment amounts will be.

Reports indicate that two informed sources also revealed that investors participating in OpenAI's latest round of financing (referred to by OpenAI as "Series C financing") will receive preferred shares, which will convert to Class A common stock upon the company's exit (such as an IPO). Informed sources also stated that investors will receive a 1x liquidation preference, a typical deal term designed to ensure that investors can at least recover their entire investment when the company is sold.

First Financing After Restructuring Paves the Way for IPO

This round of financing is OpenAI's first since the company's restructuring last fall. The reform allows the company to issue standard equity, marking a key step toward its IPO. According to media reports citing an informed source, company executives have discussed the possibility of going public as early as the fourth quarter.

Prior to this round of financing, OpenAI had raised approximately $61 billion from investors including Microsoft, Thrive, and SoftBank. Last fall, the company sold shares held by employees and other shareholders at a valuation of $500 billion.

Huge Financing to Address Astronomical Expenditures

OpenAI initiated this massive financing due to its expectations of soaring costs for AI operations and training. According to media reports citing informed sources, the company predicted last summer that between 2025 and 2030, the operating and training costs of its AI systems, as well as the backup server costs supporting its growth, will reach approximately $450 billion. This round of $830 billion valuation has significantly surged from last autumn's $500 billion, mainly due to the continued enthusiasm of major investors for the AI pioneer, despite the company's immense spending pressures. The smooth progress of financing provides ample funding support for OpenAI's technology research and development and infrastructure expansion