Tiger Global Plans to Join OpenAI’s Funding Round at More Than $150 Billion Valuation
Published Fri, Sep 13 2024 11:23 AM EDT | Updated 15 Min Ago
Key Points
- Tiger Global is planning to join OpenAI’s exciting new funding round that would value the AI startup at more than $150 billion, according to sources familiar with the situation.
- Thrive Capital is leading the round and plans to invest $1 billion.
- Major tech companies such as Microsoft, Nvidia, and Apple are reportedly in discussions to participate as well.
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In a photo illustration, the OpenAI logo is displayed on a mobile phone screen alongside a photo of Sam Altman, CEO of OpenAI. (Photo credit: Didem Mente | Anadolu | Getty Images)
Tiger Global’s Investment in OpenAI
Tiger Global is set to join OpenAI’s funding round, which is generating significant buzz and could give the artificial intelligence startup a valuation exceeding $150 billion. Sources indicate that Thrive Capital is at the helm of this round with plans to invest $1 billion. Additionally, tech giants like Microsoft, Nvidia, and Apple are also reportedly in talks to join this investment.
The Information was the first to report on Tiger Global’s intent to participate.
OpenAI’s Rapid Growth
Earlier this year, OpenAI had an estimated valuation of $80 billion, compared to $29 billion the previous year. The company has reportedly surpassed $2 billion in annual revenue as of early this year. Growth surged following the launch of its ChatGPT chatbot in late 2022, and the momentum has continued with new products aimed at businesses and expansions into AI-generated content. According to OpenAI, weekly active users have doubled from late last year, reaching 200 million.
This news comes a day after OpenAI unveiled o1, a preview of its latest AI model focused on reasoning and “solving hard problems.” Furthermore, OpenAI’s CEO Sam Altman recently participated in discussions at the White House alongside leaders from Google, Amazon, and others to consider the future of AI infrastructure in the U.S. They discussed collaboration between public and private sectors regarding AI energy consumption, data center capacity, semiconductor manufacturing, and grid capacity, according to sources familiar with the meeting.
A spokesperson for OpenAI did not immediately respond to requests for comments.
— CNBC’s Kate Rooney contributed reporting.
