According to media reports, OpenAI currently has a $4 billion revolving credit facility provided by multiple financial institutions, giving it a total liquidity of over $10 billion. Previously, OpenAI announced the recent financing round on Wednesday with a valuation of $157 billion, completing financing with $6.6 billion raised from a large number of investment firms and tech giants.

According to reports, JPMorgan, Citibank, Goldman Sachs, Morgan Stanley, Banco Santander, Wells Fargo & Co, Sumitomo Mitsui Banking Corporation, UBS Group, and HSBC all participated in this credit arrangement. The underlying credit line for this credit facility is $4 billion, with an option to increase by $2 billion.

This loan is unsecured and can be used within three years. OpenAI's interest rate is equal to the Secured Overnight Financing Rate (SOFR) plus 100 basis points. As of the beginning of this week, SOFR is slightly above 5%, which means OpenAI will pay approximately 6% interest for immediate borrowing.

OpenAI stated on Thursday that the company plans to use this funding to invest in research and products, expand infrastructure, and attract talent.

"This means that we can now access over $10 billion in liquidity, allowing us to flexibly invest in new projects and have complete flexibility in the expansion process. This once again proves our collaborative relationship with a group of outstanding financial institutions, many of which are also clients of OpenAI."

OpenAI's recent financing round attracted a large number of investment firms and tech giants. Thrive Capital led this round of financing, with investors including existing supporters Microsoft, as well as chipmaker NVIDIA, Microsoft, SoftBank, Khosla Ventures, Altimeter Capital, Fidelity Management & Research Company, MGX and Tiger Global Management participating.

Earlier this year, OpenAI was reported to be valued at $80 billion, higher than $29 billion in 2023. The latest round of financing nearly doubled OpenAI's valuation, reaching $157 billion.

According to media reports, OpenAI's revenue in August reached $0.3 billion, a 1700% increase from the beginning of last year. Insiders told the media that the company expects next year's sales to reach $11.6 billion, far exceeding the $3.7 billion in 2024.

However, all of this revenue comes with huge costs as OpenAI must significantly increase its purchases of Nvidia GPUs to train and run its large language models. The company expects to lose about $5 billion this year. In addition, Microsoft has invested billions of dollars in OpenAI and is a key partner as the software giant strengthens its Azure cloud business.

OpenAI has also experienced turmoil in recent months with the departure of several key executives. Last week, OpenAI's Chief Technology Officer Mira Murati, Head of Research Bob McGrew, and Vice President of Research Barret Zoph all resigned.

An informant revealed to the media that OpenAI held a company-wide meeting last Thursday where the board of directors decided to consider restructuring the company as a for-profit entity. If this transformation occurs, the non-profit arm will continue to exist as an independent entity. During that meeting, OpenAI CEO Altman denied reports of him receiving "a large amount of equity," calling the information "completely untrue".

OpenAI Chairman Bret Taylor stated to the media last week that although the board had discussed this issue, no specific numbers had been discussed yet.

"The board did discuss whether giving Altman equity would be beneficial to the company and our mission, but we did not discuss specific figures or make any decisions," Taylor said.

Editor/Lambor