OpenAI nears new $29 billion valuation as investors swarm startup

OpenAI, the company behind the viral chatbot ChatGPT, is nearing a deal for a new funding round valuing it at about $29 billion, according to people familiar with the matter.<br><br>The startup, which has become one of the fastest-growing companies in recent history, is set to raise about $300 million from existing backer Microsoft Corp. as well as other investors, the people said, asking not to be identified because the discussions are private.<br><br>The funding round could close in the coming days, one of the people said.<br><br>OpenAI’s valuation has surged in recent months as the company’s chatbot and generative artificial intelligence software have resonated with consumers and businesses.<br><br>OpenAI has approached investors for new capital in recent weeks as it works to shore up its finances in the face of growing competition and the need to invest in new technology and talent, the people said.<br><br>The new deal is expected to boost OpenAI’s valuation by about 50% from a $20 billion valuation in April, despite a pullback in venture capital funding over the past year. The startup saw its valuation soar in a matter of months after ChatGPT was released to the public in November.<br><br>OpenAI has been making moves in recent months to strengthen its position in the emerging generative AI market, including hiring Google executives and moving to aggressively defend its intellectual property.<br><br>The company has also been expanding its use in Microsoft products, including its search engine Bing, which has become more conversational, and its cloud and productivity software.<br><br>Microsoft has been OpenAI’s main backer and partner, investing billions of dollars in the startup through a series of funding rounds.<br><br>OpenAI and Microsoft didn’t immediately respond to requests for comment.