OpenAI is reportedly seeking a significant $50 billion investment from Middle Eastern sovereign wealth funds to bolster its financial stability amid alarming internal challenges. Veteran investor George Noble warns that the AI pioneer is “falling apart in real time,” pointing to declining ChatGPT traffic, staggering losses, and a talent exodus, which includes the departure of key executives. OpenAI’s CEO, Sam Altman, is actively pursuing funding after the company faced a “Code Red” crisis in December, triggered by competition from Google’s Gemini. Despite a previous $500 billion valuation, OpenAI is contending with substantial financial strain, with projections of $143 billion in cumulative losses. A lawsuit from Elon Musk adds to the turmoil. The company intends to close this funding round by the first quarter of the year as it seeks to navigate challenges and maintain its competitive edge in the rapidly evolving AI landscape.
Source link
Share
Read more