Let me start this off by saying that I actually hate talking about OpenAI considering it’s not publicly traded. But, for all those portfolios involved with AI right now… this breaking news is actually quite massive. 

(Source: Giphy) 

In short, word on the street is that the AI juggernaut is in talks to raise a cool $6.5 billion to increase its AI fueled valuation to a casual $150 billion. That’s right, my good friends… OpenAI, the brain child of our dearest Sam “Weird” Al-tman, is about to join the Mount Everest of valuations where only ByteDance (a.k.a. TikTok’s daddy) hangs out. 

(Source: Bloomberg) 

According to the usual anonymous sources close to the matter (aka, probably the same peeps who gave us the scoop on the government looking to hand Saudi Arabia a seat at the Nvidia buffett), this funding round is expected to be led by Thrive Capital— which is literally zero percent shocking to anyone, considering they’ve already raised a previous $5 billion for the company. 

(Source: Crypto Briefing) 

But still it’s not just them. The big dogs are circling too. Apple, Nvidia, and Microsoft are reportedly in on the action because, let’s be honest, OpenAI is the King of AI right now. Yet, what’s funny about this is that just last week, OpenAI was looking to raise a measly $1 billion at a $100 billion valuation.

But now, they’re officially chasing $6.5 billion like they’re hunting for spare change under the couch cushions. Meaning, it looks like someone on the board is a big Grant Cardone fan as they’re now switching gears to 10x this bad boy. 

(Source: Giphy) 

Which in reality, isn’t too far-fetched. As I’m sure you already know, OpenAI has been riding extremely high since the launch of ChatGPT in late 2022 as they pretty much handed the world its first taste of AI that didn’t suck. Whereas, investors have been throwing money at anything with the letters ‘A’ and ‘I’ ever since. 

Plus, given the fact that OpenAI is run by someone who successfully shimmied his way back onto the Iron Throne after being “Adam Neumanned” by his board… It's evident that anything Altman does is pretty much gold. 

(Source: The Information) 

Simply put, the guy’s got a playbook, and it works. Each year, he runs these slick tender offers that let shareholders cash out, giving everyone a taste of that sweet, sweet liquidity. Then—boom—he goes back to the investors to raise more dough. The result? An $86 billion valuation earlier this year, now ballooning to $150 billion. 

And if you think that’s wild, get this: OpenAI’s also talking with other banks to secure a $5 billion credit line. Yeah, $5 billion—just to have on standby. Which is absolutely massive, but hey, when you’re trying to build the real life version of Skynet (whether that’s good or bad, it depends on who you ask - *cough cough* Elon Musk), you need to keep the money taps flowing.

(Source: Giphy) 

Of course, what’s even more interesting (aka something we’ve discussed in previous articles),  is that Apple and Nvidia are rumored to be getting involved in this latest round. Apple’s interest? Not shocking. AI is becoming the thing in consumer tech, so it’s no surprise they want in so they can spark up more interest in their iPhone 16’s - while Nvidia’s play is all about those GPUs, baby. OpenAI needs them like my cracked out uncle needs that booger sugar after a Friday night overtime, and luckily Nvidia’s got the goods.  

However, even with all of the hype OpenAI has been surrounded with, some folks aren’t exactly on board. For instance, there’s been whispers about how this feels a little to dot-com bubble-y. 

Sure, OpenAI is a beast, but what about all the other AI startups out there raking in cash with no clear path to profitability? Critics are quick to point out that while AI is cool and all, many companies in the space haven’t really proven they can make it rain for real. See: Sequoia Capital and their “$600B Question”.

(Source: Sequoia Capital) 

For more context, take McDonalds for example. Sure their fries might be overpriced right now, but at least you know what you’re getting with that salty, delicious, fat grease. However, when it comes to AI, and every CTO on the corner block “coding” up a new Large Language Model - it’s still a massive bet on the future with an even larger chance it could evaporate when the bubble bursts. (Not saying there is a bubble, but still, nobody can visibly see a bubble in the first place, amirite?) 

(Source: Trending Topics) 

But hey, I digress. Regardless, it’s clear that OpenAI is raking in cash, hiring like sweatshops, and pushing the limits of what AI can actually do. Meaning, if this latest funding round is successful, it’s going to provide OpenAI with more than enough fuel to keep the innovation engine roaring - resulting in billions to throw at R&D, more computing infrastructure, and talent acquisition that could really seal the deal of a true Unicorn stature.

(Source: Giphy) 

So given all of this, what's the takeaway here? Well, like mentioned at the beginning of this article, OpenAI isn’t publicly traded. Booo...

However this funding round will ultimately lead to better quality of their products in the future, resulting in companies like Apple, Nvidia, and even Google  (because “Bard” sucks, and who came up with the name “Bard” anyway?) benefiting handsomely as they piggyback off OpenAI’s AI tech. 

But, but, but…

Even with that said, that’s still a waiting game of its own. Sure, we could see some nice upticks here and there… but only time will tell (longterm) what impact OpenAI will continue to have both individually as a company and to whomever leverages their technology.

(Source: Inc.) 

Which is why, while investors and AI enthusiasts will be looking for the next big opportunity in the making, that likely won’t take place for quite some time…

Our Stocks.News premium members jumped on a massive +85% win yesterday. And the best part? Word around town is that this tiny tech company is gearing up for a major SHORT SQUEEZE to end the week. 

(Source: Giphy) 

Meaning, if you’re still not part of the Stocks.News premium crew, well then you’ve got one last chance before the weekend starts. 

Click here immediately to get in now and grab the ticker before the real fireworks start. Don’t say I didn’t warn ya!

In the meantime, stay safe and stay frosty, friends! Until next time… 

Stocks.News holds positions in Apple, Google, and Microsoft as mentioned in the article.