OpenAI gets $4 billion revolving credit line, giving it more than $10 billion in liquidity
Publishing timestamp: 2024-10-03 14:15:01
Summary
OpenAI closed a funding round at a valuation of $157 billion and secured a $4 billion revolving credit line, bringing its total liquidity to over $10 billion. The company plans to use the funds to invest in research, products, infrastructure, and talent. Despite rapid growth and revenue increase, OpenAI expects to lose about $5 billion this year due to high costs. There are rumors of restructuring to become a for-profit business, but the company denies reports of CEO receiving a large equity stake. OpenAI is considering various options for tapping capital, including public markets, debt markets, and structured finance.
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