OpenAI Valuation Exceeds 200 Trillion Won... Seeks 8 Trillion Won Investment

Corporate Value of $150 Billion... Doubled in 7 Months

The corporate value of OpenAI, the developer of ChatGPT, has surged to $150 billion (approximately 201 trillion KRW). Bloomberg News reported on the 11th (local time), citing sources, that OpenAI is negotiating to raise $6.5 billion (approximately 8.71 trillion KRW) while being recognized at this corporate valuation.

Sam Altman, CEO of OpenAI, is having a conversation at the 'K-Startups meet OpenAI' event hosted by the Ministry of SMEs and Startups on the 9th at 63 Square, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

If OpenAI is recognized at a corporate value of $150 billion in this funding round, it will become the third most valuable startup ever, following TikTok's parent company ByteDance ($250 billion) and Elon Musk Tesla CEO's space startup SpaceX ($210 billion). Bloomberg evaluated, "This solidifies OpenAI's position as one of the most valuable startups in the world."

OpenAI was previously valued at $86 billion (approximately 115.24 trillion KRW) during its public tender offer in February this year. Its corporate value has nearly doubled in about seven months.

According to sources, OpenAI is also negotiating to raise $5 billion (approximately 6.7 trillion KRW) from banks through a revolving credit facility (RCF). Major tech companies such as Facebook (now Meta), Alibaba Group, Uber, and DoorDash have also obtained revolving credit facilities from Wall Street before pursuing initial public offerings (IPOs). Bloomberg explained that RCFs often serve partly to strengthen relationships with banks. In future IPOs, companies assign key roles to these banks, and in return, banks offer more favorable financial terms to the companies.

This funding round is expected to be led by venture capital firm Tribe Capital, with OpenAI's largest investor Microsoft (MS) participating. Apple and Nvidia are also discussing investments.

However, sources said that since discussions are still ongoing, the terms may change.

According to Bloomberg, last month OpenAI Chief Financial Officer (CFO) Sarah Friar told employees that the funds secured this time will be used for computing power and other operating expenses. She also stated that through a public tender offer at the end of this year, employees will be able to sell their shares.