OpenAI funding round: Securing $4 billion credit line, elevating financing to $10 billion

OpenAI's funding round was closed at complete valuation of $157 including the $6.6 billion

Tech Desk - Oct 03, 2024

OpenAI closed a $6.6 billion funding round on October 2, and today (October 3), as the company announced that it established a $4 billion credit line that positioned it among highly-valuable companies all across the globe.

The ChatGPT manufacturer said that the borrowing facility would raise its financing capacity to $10 billion, strengthening it to compete with costly computing capacity such as Google , Nvidia chips, and more.

OpenAI's Finance Chief Sarah Friar stated: "This credit facility further strengthens our balance sheet and provides flexibility to seize future growth opportunities."

A few big names including JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, Sumitomo Mitsui Banking Corporation (SMBC), Union Bank of Switzerland (UBS) and Hongkong and Shanghai Banking Corporation (HSBC) participated.

OpenAI's funding round was closed at a complete valuation of $157 including the $6.6 billion, which was raised from big tech companies including the tech giant Microsoft, chip manufacturer Nvidia, SoftBank and it was led by Thrive Capital.

Furthermore, a few top officials including OpenAI CTO Mira Murati, and two other top officials departed from the company, but even the personal change couldn’t reduce the enthusiasm of investment firms, since they anticipate an exponential surge according to the company’s CEO Sam Altman.

Despite losing around $5 billion, OpenAI still aims to generate $3.6 billion this year and expects a substantial rise in sales to approximately $11.6 billion this year.