OpenAI reportedly closed a $100 billion deal at a valuation of more than $850 billion

OpenAI is close to a deal to raise more than $100 billion at a valuation that could exceed $850 billion. Bloomberg reports, Quoting sources familiar with the matter.

The deal comes as the maker of ChatGPT burns cash while moving toward profitability. To that end, OpenAI said it will launch soon Advertisements in ChatGPT For free users, it is a gamble that may lead to more revenue or may prompt users to flee the platform.

Investors clearly think it’s worth the risk if they value the company at $20 billion higher than the initially expected valuation of $830 billion. The company’s pre-money value will remain at $730 billion, according to a Bloomberg source.

The first tranches of funding are said to come from the usual suspects: Amazon (already in talks to invest Up to $50 billion), SoftBank (prepare for 30 billion dollars), Nvidia (close to investment 20 billion dollars), and Microsoft. Venture capital firms and sovereign wealth funds are expected to close their doors later, which could cause the total amount raised to rise.