OpenAI is nearing a deal to raise about $10 billion from venture investors, according to people familiar with the matter, bringing the total haul from its latest funding round to more than $120 billion.
In an interview Tuesday on CNBC, OpenAI Chief Financial Officer Sarah Friar confirmed that the company was tapping investors for the additional funds. Andreessen Horowitz, Abu Dhabi's MGX, D.E. Shaw Ventures, TPG and T. Rowe Price will co-lead the financing, which is set to close next week, the company told Bloomberg Tuesday.
Coatue Management, Thrive Capital and Altimeter Capital are also set to participate in the round at a $730 billion valuation, not including the money raised, said the people, who spoke on condition of anonymity to discuss private information.
OpenAI investor Microsoft Corp. will participate in this deal, Friar said in the interview, calling the company an “incredible partner.”
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The ChatGPT maker announced last month that it had finalized a deal to raise $110 billion in funding from Amazon.com Inc., Nvidia Corp. and SoftBank Group Corp. Bloomberg News previously reported OpenAI planned to seek more money from venture firms before completing the round.
Representatives for Coatue, MGX, Thrive and Altimeter did not respond to requests for comment.
The deal marks OpenAI's largest funding round to date and bolsters its costly push to secure more computing power and talent for AI development. The additional capital would bring OpenAI's valuation to around $850 billion, including the money raised.
OpenAI rival Anthropic PBC completed a deal last month to raise $30 billion from investors at a $380 billion valuation. MGX co-led that funding round.
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Separately, OpenAI is planning to discontinue the app for its Sora video-generation platform, the Wall Street Journal reported on Tuesday, part of an effort to refocus on business and coding functions.
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