(Aug 29): OpenAI is getting closer to raising funding at a valuation of more than US$100 billion (RM433.53 billion) in a round led by Thrive Capital, people with knowledge of the matter said.

Thrive will invest about US$1 billion in the round, said one of the people, who asked to remain anonymous because the fundraising hasn’t been made public. OpenAI chief financial officer Sarah Friar told employees in a memo on Wednesday that the company is seeking fresh capital, without giving details, according to people familiar with the matter.

OpenAI has been in early discussions to raise funding at a valuation at or above US$100 billion since at least December, people with knowledge of the matter told Bloomberg News late last year.

The financing would create one of the world’s most valuable venture-backed startups, underscoring growing demand for generative artificial intelligence (AI) software after OpenAI captured public interest with its easy-to-use chatbot, ChatGPT. The success of OpenAI, which is backed by Microsoft Corp, also kicked off an arms race among larger tech firms, which are integrating AI technology across their products and funding other promising startups.

In her memo to employees, Friar said the financing will support the need for computing power and other operating expenses, the people said. She also told staff that the company is aiming to offer a tender event, where employees will be able to sell off some of their shares later this year. She added that these discussions are still in the early stages and details have yet to be confirmed.

Thrive’s plan to invest was earlier reported by The Wall Street Journal.

Uploaded by Tham Yek Lee