OpenAI's 2024 Round of Funding

OpenAI could be valued at $100 to $110 Billion

Hey Everyone,

Rumors of the next rounds of Anthropic and OpenAI are already out. We’ve covered Anthropic already so let’s cover the latest one from OpenAI.

OpenAI is in early talks to raise a fresh round of funding at a valuation at or above $100 billion, Bloomberg said on Friday. My guess is it would be around $110 Billion valuation.

Hard to reconcile considering most of their revenue goes to Microsoft. But that would make OpenAI would be second-most valuable US startup behind SpaceX!

OpenAI has also held discussions to raise funding for a new chip venture with Abu Dhabi-based G42, according to the report.

Still for a relatively new startup to be worth $110 Billion, it’s hard to justify even with dramatic hype especially considering the amount of competition it will face in 2024 from peers, and much cheaper and more customizable APIs for foundational models. Also given that it has struggled to retain and keep daily active users of ChatGPT.

This in spite of all the bells and whistles they give ChatGPT. Anthorpic and OpenAI are both in preliminary funding discussions where details like the terms, valuation and timing of the funding round haven’t yet been finalized and could still change.

Meanwhile OpenAI Startup Fund’s second converge has launched. OpenAI Startup Fund (which, to be clear, doesn’t count OpenAI as an investor; it’s very confusingly a separate entity) says TechCrunch.

Microsoft is betting how ChatGPT and Github Copilot is changing software engineering will be very lucrative and some early indications are that they are right. Generative AI could influence how valuable they are to organizations as it automates coding and software development tasks.