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OpenAI in Talks for $100 Billion Valuation with New Deal
- Written by Andrea Miliani Former Tech News Expert
OpenAI is discussing a new deal that could raise its value to $100 billion or more. The new investment would represent a $20 billion value increase, as recent estimations valued the company at $80 billion a few months ago.
According to CNBC , the investment firm Thrive Capital has led the round and is willing to invest $1 billion. As reported by anonymous sources, other relevant tech companies like Microsoft—which recently declared OpenAI as one of its competitors —are also participating in the round.
OpenAI’s exponential growth began in 2022, after the launch of its popular AI chatbot ChatGPT. Last year, in 2023, the company was valued at $29 billion. Even though more companies have developed similar AI products, OpenAI is still leading the way in the AI market.
According to the New York Times , the new investment “would allow other existing shareholders to sell their shares.” Not many details have been revealed, and OpenAI and Microsoft have not commented on the recent reports regarding the new round.
OpenAI’s technologies have impressed a large public, and many are curious about its upcoming developments. The San Francisco-based company recently announced a new product, a search engine called SearchGPT , that could take Google’s audience and impact the way people search for information.
Despite all the internal controversy with most cofounders leaving the company and former and current workers warning about security risks, the company keeps getting investors’ attention.
OpenAI is also facing a possible relocation or legal battle as a new AI safety bill could be approved in the following days. The AI startup has publicly rejected the new bill, stating that it “ makes no sense, ” and has stopped its office expansion in California while local authorities announce the final verdict in the next few days.
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Nvidia Shares Fall as AI Chip Giant Fails to Meet Investor Expectations
- Written by Andrea Miliani Former Tech News Expert
- Fact-Checked by
Nvidia Corporation shares fell 6% after-hours in New York despite hitting revenue records and doubling its sales. According to the BBC , the AI chipmaker announced record revenues of $30bn, surpassing the expected revenues of $28.7bn and increasing sales by 122% compared to the previous year.
However, according to the data shared, that impressive growth is starting to slow down. “If you’re going to raise expectations that high then you’ve got to keep growing at spectacular rates,” said Simon French, head of research at Panmure Liberum, to the BBC.
Nvidia had been building high expectations in the past few months. They announced a new affordable generation of AI chips in March , called Blackwell, and in July it was revealed that the company has been working on a new flagship model for the Chinese market . However, investors were expecting more groundbreaking results during this last quarterly results.
“Markets expect them to be shattered, and it’s the scale of the beat today that looks to have disappointed a touch,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown, to the BBC.
According to Mr. French, the new generation of AI chips ”has faced some production delays, and that perhaps is one of the reasons why Wall Street after hours sold off the stock.”
Nvidia shared samples of the new Blackwell chip and has been working on it to make it more efficient during this past quarter. According to CNBC , the company expects to sell it soon and make several billion dollars in the fourth quarter this year.
Nvidia keeps successfully selling its Hopper AI Chips, an older generation, and producing products for the gaming market—the company’s former main target. Now that the company has gained popularity in the AI industry, its AI chips have become the main reference. However, more chipmakers have jumped into the AI market as well which is also part of the investors’ concerns.
