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OpenAI completes $122 billion funding round, valued at $852 billion
ME News update, on April 1 (UTC+8), OpenAI completed a round of financing totaling $122 billion, setting a new record for the most in Silicon Valley history, with a valuation of $852B. The company expects to carry out a major IPO before the end of the year. This deal also brings an additional benefit: it broadens channels aimed at retail investors. This round of financing will further expand OpenAI’s capital reserves. The company is currently spending heavily to purchase artificial intelligence chips, expand data centers, and recruit top talent with high salaries. SoftBank and the Anderson · Horowitz Fund, D.E. Shaw Ventures, MGX, TPG, and Purnby Group led this financing together, and Amazon, Nvidia, and Microsoft also participated in the investment. About $3 billion in funding is provided by individual investors through banking channels. Several exchange-traded funds under Ark Investment Management Co. will also be included in the OpenAI target, enabling more ordinary investors to hold shares in this private company, helping it further broaden its shareholder structure ahead of the rumored upcoming 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, so far, this credit facility has not been drawn on. This means that at the stage of ramping up investments in computing power and infrastructure, the company’s move is intended to strengthen financial flexibility rather than address any short-term liquidity shortfall. (Source: X platform)