On Feb 16th, 2024, OpenAI raised money at a $80 Billion valuation, nearly tripling its valuation in 10 months -> OpenAI Completes Deal That Values the Company at $80 Billion – The New York Times (nytimes.com)

A few days ago, end of August 2024, we found out that OpenAI is raising money at a $100 Billion valuation -> OpenAI Eyes $100 Billion Valuation – The New York Times (nytimes.com)

OpenAI’s Latest Funding – The Details

Thanks to CNBC for these details -> OpenAI in talks to raise funding that would value it at more than $100 billion (cnbc.com)

1. Valuation over $100 Billion
2. Thrive Capital would lead the round and invest $1 Billion
3. Microsoft would also participate
4. Nvidia and Apple are rumored to be interested. No confirmation, yet, that they will participate
5. OpenAI’s annualized revenue has reportedly grown to $2 billion a year

11 Thoughts on OpenAI’s $100 Billion Valuation

1. Given the sky-high valuations of the other frontrunners (Anthropic, Mistral AI), it is not surprising that the market leader, OpenAI, would be valued at over $100 Billion
2. It is super smart of OpenAI to keep raising loads of money. It has some competitors that are very well funded
   • It also has some large tech competitors (Google, Facebook/Meta) that have immense warchests
3. Techcrunch says OpenAI is on track to lose $5 billion in 2024 -> OpenAI reportedly in talks to close a new funding round at $100B+ valuation | TechCrunch
   • If this is true, then OpenAI definitely needs a lot of funding, and ASAP
4. To us it is very interesting that there is so much funding flowing into AI companies. Everyone sure as heck seems to be thinking that AI taking over the world is a foregone conclusion
   • Even more interesting – Everyone seems to think that one or more of the current AI startups will be the Big Winners in AI
5. OpenAI’s $100 Billion valuation would eclipse Anthropic and MistralAI’s valuations of $15 Billion and $6 Billion
   • We do think OpenAI is more valuable. However, by this much? Is OpenAI really worth 5 times Anthropic & Mistral combined?
6. Nvidia and Apple are rumored to be very interested -> OpenAI latest funding tempts 3 most valuable technology companies | Tech News – Business Standard (business-standard.com)
   • Microsoft is already confirmed to participate
   • Basically, everyone wants a piece of OpenAI
7. This funding round will massively increase the pressure on other AI startups. If the leader, OpenAI, keeps raising at very high valuations, it will be hard for everyone else to keep up
8. Wonder what Google and Meta/Facebook think of this Funding Round
   • It would seem that Microsoft and Apple are putting their weight behind OpenAI
   • To be quite frank, OpenAI by itself would have a hard time competing against the massive resources of Facebook/Meta and Google
   • However, if Microsoft and Apple keep funding OpenAI then OpenAI can stay at #1 for a long time
     • Then Meta/Facebook and Google’s attempts to catch up might not work
     • For Google, especially, this is an existential threat as SearchGPT (OpenAI’s upcoming search engine powered by AI) could wreck Google’s search dominance
9. AI moves so fast. This entire market space is surreal. Things move so incredibly fast. It makes even crypto seem slow
10. It is super funny that OpenAI is now perhaps the least ‘open’ and least ‘non profit’ company you could imagine
11. OpenAI is a beautiful opportunity for Apple and Microsoft to put Google in the grave
    • Steve Jobs’ hatred of Google is well known
    • Microsoft’s attempts to kill Google are also nearly as well known
    • OpenAI presents the best chance in decades to finally kill Google

We really do live in the most interesting timeline. There is never a dull day in AI.