OpenAI Gears Up for Major Financing Round with $150 Billion Valuation

OpenAI's latest financing round, poised to raise $6.5 billion, will involve convertible notes contingent on restructuring its corporate framework and lifting the profit cap for investors. The AI startup's valuation hinges on these changes as it attracts substantial investment from tech giants like Microsoft, Nvidia, and Apple.

OpenAI's upcoming financing round is expected to feature convertible notes, pegged to a $150 billion valuation contingent on restructuring its corporate framework and removing a profit cap for investors, according to sources familiar with the matter.

The unreported details of the $6.5 billion funding highlight the shift from OpenAI's research-based non-profit roots to a profit-driven structure aimed at attracting significant investment for its ambitious pursuit of artificial general intelligence (AGI). Investor interest is strong, with completion possible within two weeks, fueled by rapid revenue growth.

Existing investors, including Thrive Capital, Khosla Ventures, and Microsoft, are expected to participate, alongside new investors like Nvidia and Apple. Sequoia Capital is also in discussions to return as an investor. Should the restructuring fail, OpenAI would need to renegotiate the valuation terms at a potentially lower figure, sources told Reuters under anonymity due to the private nature of the discussions. OpenAI has declined to comment.

(With inputs from agencies.)