OpenAI is reportedly negotiating a fresh round of funding that could value the ChatGPT maker at over $100 billion.
Thrive Capital is expected to lead the investment, committing $1 billion to the round, according to Wall Street Journal, which first reported the development.
It also reported that Microsoft, OpenAI's largest investor, is participating in the funding round.
It comes after OpenAI's valuation skyrocketed earlier this year, reaching approximately $80 billion, up from $29 billion the previous year.
The company's revenue is believed to have exceeded $2 billion on an annualized basis, driven by the rapid adoption of its AI-powered products as well as advancements in AI-generated imagery and video content.
The news comes shortly after OpenAI revealed plans to launch a prototype search engine called SearchGPT.
The tool, designed to deliver "fast and timely answers with clear and relevant sources," is currently being tested by a select group of users.
The company intends to eventually integrate SearchGPT into its widely used ChatGPT platform.
The move could potentially challenge Google's dominance in the search engine market.
Since the introduction of ChatGPT, there has been growing concern among Alphabet investors about the possibility of OpenAI capturing a share of the search market by offering innovative ways for users to find information online.
OpenAI CEO Sam Altman hinted at the company's ambitions in a recent post on social media platform X, saying, "We believe there is significant room for improvement in search, and we're exploring new possibilities to make it better than ever."
Altman also said that the new tool aims to allow users to search in a more conversational and intuitive manner.
Thrive Capital, led by Josh Kushner, is one of the most significant investors in OpenAI, having purchased employee stock last year in a transaction that valued the AI powerhouse at $86 billion.
OpenAI's valuation has continued to climb, driven by rapid advancements in generative AI and the increasing belief that this technology will transform numerous sectors of the economy.
The company's annualized revenue reached $2 billion earlier this year. However, the rapid growth of AI start-ups has sparked concerns about the sustainability of their business models.
OpenAI is also facing mounting competition from other industry players, such as Anthropic, Google, and Elon Musk's recently launched xAI, which has secured $6 billion in funding to challenge ChatGPT's dominance.
