OpenAI reportedly raises $11 billion, adding funding for AI computing

OpenAI, the developer of ChatGPT, reportedly raised $11 billion in a new funding round valuing the company at $1.25 trillion—the value investors place on the whole business in the transaction. A report citing a person familiar with the matter said the funding closed on November 6.^[1]

Reports agree that the valuation fell short of the original target but differ on that target: one puts it at $1.4 trillion, while another says the agreed valuation was $50 billion below the goal.^[2][1]

The $11 billion financing increases the funds OpenAI can use to develop and run AI models. Those models require substantial computing resources, so spending the proceeds on cloud services or additional computing capacity could bring cloud providers more business and support their demand for chips, servers and data-center capacity.^[3]

The effect depends on allocation: the supplied reports do not specify how much will go toward computing or identify new supplier orders, leaving the resulting revenue gains for suppliers unquantified.^[4][3][1]

Impact