OpenAI completes $122 billion funding round, valued at $852 billion

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ME News message: on April 1 (UTC+8), OpenAI completed a round of fundraising totaling about $12.2 billion, setting the highest record in Silicon Valley history, with a valuation of about $852 billion. The company expects to carry out a major IPO by the end of the year. This deal also brings an additional benefit: it broadens channels for retail investors. This round of fundraising will further expand OpenAI’s funding reserves. Currently, the company is spending heavily to purchase AI chips, expand data centers, and recruit top talent with high salaries. SoftBank and the Anderson · Horowitz fund, D.E. Shaw Ventures, MGX, TPG, and Pruzhong Group jointly led this fundraising round, and Amazon, NVIDIA, and Microsoft also participated in the investment. About $3.0 billion in funding was contributed by individual investors through banking channels. Multiple exchange-traded funds under Ark Investment Management Company will also be included in the OpenAI exposure, allowing more everyday investors to hold shares in this non-listed company and helping it further expand its shareholder base ahead of the rumored upcoming initial public offering.

OpenAI also announced that, with support from multiple global top banks, its revolving credit facility has been expanded to about $4.7 billion. The company said that this credit facility has not been drawn on yet. This means that in the stage of stepping up compute power and infrastructure investment, the company’s move is intended to enhance financial flexibility, rather than respond to a near-term liquidity shortfall. (Source: X platform)

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