OpenAI reportedly finalizing $100B deal at more than $850B valuation

OpenAI is on the brink of securing over $100 billion in funding, with its valuation projected to soar past $850 billion, according to sources cited by Bloomberg. This significant financial move comes as the developer of ChatGPT seeks to stabilize its cash flow while working towards profitability. In a bid to generate additional revenue, OpenAI has begun testing advertisements within ChatGPT for its free users. This strategy could either enhance earnings or risk driving users away from the platform, a dilemma that investors seem willing to embrace given the company's valuation has now risen by $20 billion beyond initial expectations of $830 billion. Bloomberg's sources indicated that OpenAI's pre-money valuation remains steady at $730 billion. The initial investment rounds are expected to involve major players, including Amazon, which is in discussions to contribute up to $50 billion, SoftBank eyeing a $30 billion stake, and Nvidia, which is close to committing $20 billion. Additionally, venture capital firms and sovereign wealth funds may join in later, potentially increasing the total funding amount. TechCrunch has reached out for further comments from OpenAI.