OpenAI may “raise” $6.5 billion

Company valuation could reach $150 billion.

The investment round may include Microsoft, Apple, and NVIDIA.

The OpenAI funding round has garnered attention in recent days. The AI industry leader wants to grow. It wants to be huge.

Huge investment round. Bloomberg reports that OpenAI will seek $6.5 billion from investors. It is an extraordinary amount for an operation of this type, but if they get it, they will become a very valuable company.

$150 billion. If it raises that much in the investment round, OpenAI could be worth $150 billion. That would make it one of the world’s largest companies, almost double its $85 billion valuation.

As big as Disney or Uber. OpenAI would be worth as much as The Walt Disney Company, Uber, Comcast, or Goldman Sachs. Spain’s Inditex, worth $168 billion, is close behind.

However, they need more funding. OpenAI is negotiating a $5 billion additional funding as part of the deal. An anonymous source said it would use bank debt through a revolving credit line. Large operating costs would provide OpenAI with the “fuel” to continue offering and improving its services for a long time.

Popular option. Other large technology companies have used this line of credit. Facebook, Alibaba, and Uber did it. Companies typically give banks that sign such commitments significant advantages in their subsequent public stock offerings. Thus, banks can buy OpenAI shares at low prices if it goes public.

Big Tech is involved. Data suggests Thrive Capital will lead the round, but three tech giants may also participate. Apple, NVIDIA, and Microsoft—which invested millions in 2023—would join the round.

Strawberry sighting. Strawberry, OpenAI’s new reasoning model that reduces errors, will arrive shortly after the round’s announcement. If the company outperforms its competitors here, it will have a new and important tool to maintain its market leadership. The advances in GPT-40 and the iPhone and iPad demos we saw a few months ago have not yet reached users, but they promise to be striking and useful.

Israeli business wire #DebuggerToday, Lightrun, the global leader in developer observability, launched the industry’s first Runtime Autonomous AI Debugger in private beta. Lightrun frees developers from endless troubleshooting by automating the entire debugging process, from ticket to IDE line of code. This novel approach revolutionizes observability and software debugging by saving developers 50% of their time on troubleshooting and reducing production incident MTTR to minutes. Lightrun also announced that it raised $18 million last year from GTM Capital and existing investors Insight Partners and Glilot Capital, bringing its total funding to $45 million and solidifying its observability dominance.

Lightrun has helped F100 enterprise customers like Salesforce, Microsoft, AT&T, SAP, ADP, Priceline, and Inditex protect revenue, manage production downtime risks, and improve customer experience. Lightrun saves businesses hundreds of millions of dollars by preventing mission-critical application downtime.

Lightrun’s new GenAI model automates live production debugging, helping developers troubleshoot production apps in minutes instead of days or weeks.

OpenAI may “raise” $6.5 billion

Company valuation could reach $150 billion.

By ki0nk

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OpenAI may “raise” $6.5 billion

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