OpenAI is reportedly trying to raise $100 billion at a valuation of $830 billion

OpenAI is in talks to raise up to $100 billion in a funding round that could value the ChatGPT maker at up to $830 billion, The Wall Street Journal reported on Thursdayciting anonymous sources.

The company intends to raise financing by the end of the first quarter of next year and may approach sovereign wealth funds in this round, reports WSJ. First, information reported News of the deal, although it was reported that the fundraising would bring OpenAI a price tag of $750 billion.

The funding comes as OpenAI commits trillions of dollars and strikes deals around the world as it tries to stay ahead of the curve in the race to develop artificial intelligence technology. The cash infusion would also support the company’s inference spending, which appears to be funded more by cash than cloud credits, suggesting the company’s computing costs have risen beyond what partnerships and credits can subsidize.

As competition intensifies from rivals such as Anthropic and Google, OpenAI has had to step on the gas to release fresh models and expand its presence in the developer and tool ecosystem.

Meanwhile, broader sentiment around AI recently cooled down investors are beginning to doubt whether it will be possible to maintain the pace of debt-fueled investments by giants such as Amazon, Microsoft, Oracle and OpenAI itself in the long run. The fact that the chips are still being produced doesn’t support either forced shortages in the supply of memory chips, which could impact the broader technology sector.

There are also rumors that OpenAI is working on IPO as a way to raise tens of billions and finance the development efforts currently being talked about generation annual revenues of approximately $20 billion. There are also rumors that the company is seeking a $10 billion investment for Amazon that would give its AI lab access to the tech giant’s fresh AI computing chips.

If the fundraising takes place, it will significantly escalate OpenAI’s coffers, which are currently estimated to be over $64 billion PitchBook data. Most recently, a secondary transaction valued the company at approximately $500 billion.

OpenAI did not immediately respond to a request for comment.