AI funding arms race escalates: OpenAI adds another $10 billion in ammunition, valuation reaches $850 billion.

According to informed sources, OpenAI is close to completing a transaction to raise about $10 billion from venture capitalists, bringing its latest round of financing to over $120 billion. Sarah Friar, CFO of OpenAI, confirmed on Tuesday in an interview that the company is seeking additional funds from investors. OpenAI announced on Tuesday that Andreessen Horowitz, Abu Dhabi investment firm MGX, D.E. Shaw Ventures, TPG, and T. Rowe Price will jointly lead this round of financing, expected to be completed next week. Sources, who requested anonymity due to discussions of non-public information, stated that Coatue Management, Thrive Capital, and Altimeter Capital will also participate in this round of financing, with a corresponding valuation of approximately $730 billion (excluding funds raised). Friar stated in the interview that OpenAI's investor Microsoft will participate in this transaction, calling them a "great partner." The developer of ChatGPT announced last month that it had finalized a $110 billion funding deal from Amazon, Nvidia, and SoftBank Group. Previous reports indicated that OpenAI plans to seek more funding from venture capital firms before completing this round of financing. Representatives from Coatue, MGX, Thrive, and Altimeter did not immediately respond to requests for comment. This transaction is the largest round of financing for OpenAI to date and will provide funding for more computing power and AI development talent. Including the funds raised, this round of financing will bring OpenAI's valuation to approximately $850 billion. Competitor Anthropic PBC completed a $30 billion financing round last month, with a valuation of $38 billion, with MGX co-leading the round of financing. Additionally, it was reported on Tuesday that OpenAI plans to deactivate the application for its Sora video generation platform, as part of a strategic adjustment to refocus on business and coding features.