OpenAI, the AI powerhouse behind ChatGPT, is negotiating a fresh funding round that could push its valuation beyond the $100 billion mark, according to sources cited by The Wall Street Journal.
But here’s the kicker: investors aren’t waiting for official numbers—they’re already valuing the company at sky-high levels on the secondary market.
In these secondary deals, where investors buy shares from existing shareholders rather than directly from the company, OpenAI is being priced at valuations well above $100 billion.
Several firms tracking these transactions, like Rainmaker Securities and Caplight, report that bids have soared, valuing OpenAI as high as $143 billion.
Caplight’s data indicates a current valuation north of $111 billion, driven by both secondary activity and previous funding rounds.
The primary funding deal in the works, rumored to be led by Josh Kushner’s Thrive Capital with a hefty $1 billion investment, would mark a significant leap for OpenAI.
The company’s last official valuation, after a secondary sale in September, was $86 billion, as reported by Bloomberg. Now, with tech giants like Microsoft, Nvidia, and Apple potentially joining the fray, the stakes are higher than ever.
“There’s no shortage of investors eager to be part of OpenAI’s journey,” noted Glen Anderson, co-founder of Rainmaker Securities.
While a $100 billion valuation might seem steep, Anderson believes it could be a bargain if OpenAI fulfills its potential.
Greg Martin, another co-founder at Rainmaker, echoed this sentiment, highlighting the company’s rapid revenue growth—from zero to billions in just a few years.
OpenAI is projected to hit $2 billion in annual recurring revenue by year-end, according to The Information.
However, the road ahead is not without challenges. OpenAI is still burning through cash at an alarming rate, but the business community is buzzing with optimism.
As Martin pointed out, the fear of missing out is driving demand, with some even speculating that OpenAI could eventually be worth a trillion dollars.
As this funding round unfolds, it’s likely to trigger a surge in secondary market activity, not just for OpenAI but for other AI contenders like Anthropic, Cohere, and Hugging Face.
According to Martin, “It generates buzz, and excitement, and resets market expectations.”
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