Investors are already valuing OpenAI at over $100B on the secondaries market

OpenAI is reportedly in discussions to raise a new funding round that could value the company at over $100 billion. This valuation is supported by secondary deals where investors have bought shares from existing investors at prices indicating a valuation above $100 billion. The primary deal is rumored to be led by Thrive Capital, with potential investments from Microsoft, Nvidia, and Apple. The company, which was valued at $86 billion in a secondary sale in September, has seen bids on its stock that value it up to $143 billion.

The company's revenue has also seen a significant increase, going from zero to billions in just a few years. It is projected to hit $2 billion in annual recurring revenue by the end of the year. Despite the high valuation, some believe that the company could be worth a trillion dollars in the future. This funding round is expected to generate more secondary activity around OpenAI and other AI competitors, potentially boosting their valuations as well.

Key takeaways

OpenAI is reportedly in talks to raise a new round of funding at a valuation exceeding $100 billion, with investors already showing willingness to value the company that high.
The primary deal is said to be led by Thrive Capital, with potential investors including Microsoft, Nvidia, and Apple.
OpenAI's revenue has increased significantly, going from $0 to billions in just a few years, and is expected to hit $2 billion in ARR by the end of the year.
This funding round is expected to spark more secondaries activity around OpenAI and other AI competitors, potentially boosting the valuations of companies like Anthropic, Cohere, and Hugging Face.

Investors are already valuing OpenAI at over $100B on the secondaries market | TechCrunch

Key takeaways

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