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

Aug 31, 2024 - news.bensbites.com
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.
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