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OpenAI completes $122 billion funding round, valued at $852 billion
ME News message, on April 1 (UTC+8), OpenAI completed a $122 billion funding round, setting the highest record in Silicon Valley history, with a valuation of $852 billion. The company expects a major IPO before the end of the year. This deal also brings an added benefit: it expands channels aimed at retail investors. This funding round will further bolster OpenAI’s cash reserves. The company is currently spending heavily to purchase AI chips, expand data centers, and hire top talent with high salaries. SoftBank and the Andreessen Horowitz Fund, D.E. Shaw Ventures, MGX, TPG, and Pru Group jointly led the financing, and Amazon, Nvidia, and Microsoft also participated in the investment. About $3 billion of the capital was contributed by individual investors through banking channels. Several exchange-traded funds managed by Ark Investment Management Company will also be added to the OpenAI target, enabling more everyday investors to hold shares in this private company and helping it further broaden its shareholder structure ahead of the soon-to-be-rumored initial public offering.
OpenAI also announced that, with support from multiple global top banks, its revolving credit facility has been expanded to about $4.7 billion. The company said that this credit facility has not yet been drawn on. This means that at a stage of ramping up investments in computing power and infrastructure, its move is intended to enhance financial flexibility rather than address a short-term liquidity shortfall. (Source: X platform)