In a historic achievement, OpenAI closes the largest VC round, bringing its total funding to $17.9 billion. OpenAI has closed a monumental funding round, raising $6.6 billion. The new funding, which values the company at $157 billion post-money, was led by Thrive Capital, a long-time investor in the AI startup. This brings OpenAI’s total funding to an impressive $17.9 billion, according to Crunchbase. Along with the cash influx, OpenAI also secured a massive credit line that boosts its liquidity.
In addition to the $6.6 billion raised, OpenAI has obtained a $4 billion revolving line of credit. This credit line was syndicated across nine major banks, including Wells Fargo, JPMorgan Chase, and Santander. This move grants OpenAI access to over $10 billion in liquidity, offering it the flexibility to invest in new ventures. The company revealed this in a post late Wednesday, stating that this access allows them to operate with greater agility.
Reports indicate that this credit line comes with a 6% interest rate and includes an option to expand it by an additional $2 billion. The interest rate could make borrowing expensive if the funds are drawn upon heavily, given rising costs.
Tracking $3.7 Billion in Revenue Amid Losses
As OpenAI closes the largest VC round, the company also secures a $4 billion credit line from major banks. OpenAI is expected to generate $3.7 billion in revenue this year. However, the company is projected to incur $5 billion in operational losses, highlighting the high costs of running such a large-scale AI enterprise. The company’s leadership has undergone recent changes, sparking speculation about restructuring into a more traditional for-profit entity. Despite this, CEO Sam Altman has denied receiving any significant equity stake amidst the shifting dynamics.
ElevenLabs Eyes $3 Billion Valuation in New Funding Talks
With this milestone, OpenAI closes the largest VC round, setting a new benchmark for tech startups. In another news, ElevenLabs, a two-year-old AI company specializing in synthetic voice technology, is in talks with investors for a new funding round. This round could see the company valued as high as $3 billion. Existing investors, alongside new venture capital firms, are interested in the fast-growing startup, TechCrunch has learned.
Sources reveal that ElevenLabs’ annual recurring revenue (ARR) surged from $25 million at the end of last year to approximately $80 million recently. This significant growth is fueling interest among investors, with some willing to back the company at an estimated 38 times its most recent ARR. While this multiple is slightly lower than what enterprise-focused AI companies like Hebbia and Glean have achieved, ElevenLabs’ consumer-focused revenue stream may explain the conservative valuation.
Despite the rapid growth, some investors are reportedly passing on the deal. However, ElevenLabs’ innovative products, such as synthetic voice tools for audiobook narration and real-time video dubbing, continue to attract attention. The company has raised $100 million so far, with its last round co-led by Andreessen Horowitz, Nat Friedman, and Daniel Gross in January.
Elon Musk’s X Now Valued at $9.4 Billion
Elon Musk’s social media platform, X, has seen its valuation slashed by nearly 79% since its $44 billion acquisition. According to new estimates from investor Fidelity, X, formerly known as Twitter, is now worth just $9.4 billion.
Fidelity’s Blue Chip Growth Fund has reduced its stake in X to approximately $4.19 million, a drastic decline from its initial $19.66 million investment. This markdown reflects an overall valuation of $9.4 billion for X, a stark contrast to the price Musk paid for the platform.
This is not the first time Fidelity has slashed the value of its investment in X. Back in July, the investment firm valued its shares in the company at $5.5 million, marking a steady decline in X’s perceived worth.
Also Read: Musk’s xAI Moves into OpenAI’s Old HQ, Intensifying Tech Rivalry.
