OpenAI, the company behind ChatGPT, has secured a new $4 billion revolving credit line. This announcement follows the close of a $6.6 billion funding round that solidified OpenAI’s position as one of the most valuable private companies globally, with a valuation nearing $157 billion. The new funds will enhance the company’s liquidity to $10 billion, enabling it to acquire high-cost computing resources, including Nvidia chips, as it competes with major tech players.
OpenAI’s finance chief emphasized that the credit facility would strengthen the company’s financial foundation and provide flexibility for future growth opportunities. Major financial institutions, including JPMorgan Chase and Goldman Sachs, are backing the credit line.
The recent funding round also saw continued support from prominent investors and the participation of major partners like Microsoft and Nvidia. This round of funding comes in the form of convertible notes, with the conversion depending on structural changes within the company.
Despite leadership changes, including the departure of Chief Technology Officer Mira Murati, investor confidence remains high. OpenAI is on track to generate $3.6 billion in revenue this year, with projections for next year reaching $11.6 billion.
