OpenAI is in talks to raise funding at a $150 billion valuation

OpenAI is also looking to raise $5 billion in debt, Bloomberg reported.

The new valuation makes the startup one of the most valuable in the world — and it’s a big jump from the company’s previous valuation of $86 billion, which was calculated when the company allowed employees to sell shares in the company in February.

The funding round is led by Josh Kushner’s Thrive Capital, a New York-based venture capital firm known for its early-stage investments in startups including Instagram, Stripe, Robinhood, Spotify and Slack.

Microsoft, which has been a partner since 2019, Apple and even Nvidia are also discussing an investment in the maker of ChatGPT.

Despite being a startup with an unconventional structure (a nonprofit partnering with a low-profit arm), OpenAI has already proven to be the leader in AI among a growing field of well-funded competitors looking to capitalize on the technology.

In a memo sent to employees last month, OpenAI Chief Financial Officer Sarah Friar wrote that the money raised will be used for computing power and other operating costs, Bloomberg reported. The memo also noted that the startup plans to allow employees to sell some of their shares in a public offering later this year.

A public offering gives employees of private companies the chance to sell a certain number of shares at a fixed price for a limited time. It’s especially common among startups like OpenAI that choose to remain private so employees can’t cash out directly through an IPO.

OpenAI joins a handful of other private companies that are worth far more than most publicly traded peers. Elon Musk’s SpaceX was valued at nearly $210 billion in June after selling its insider shares for $112 in a public offering. Other large private companies include TikTok parent ByteDance, which was valued at $286 billion late last year, and Stripe, which was valued at $70 billion in July.

OpenAI did not immediately respond to a request for comment.