In addition to OpenAI’s new $6.6 billion megaround of funding at a post-money valuation of $157 billion, the outfit has secured a $4 billion revolving line of credit, it disclosed in a post Thursday night. The arrangement gives it “access to over $10 billion in liquidity, which gives us the flexibility to invest in new […]
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In addition to OpenAI’s new $6.6 billion megaround of funding at a post-money valuation of $157 billion, the outfit has secured a $4 billion revolving line of credit, it disclosed in a post Thursday night. The arrangement gives it “access to over $10 billion in liquidity, which gives us the flexibility to invest in new initiatives and operate with full agility,” it said.
The debt line was syndicated across nine banks, including Wells Fargo, JPMorgan Chase, and Santander, according to OpenAI.
CNBC is separately reporting the credit line includes an option to expand by another $2 billion and carries an interest rate of 6% (which could become expensive quickly if it’s tapped).
OpenAI says it’s tracking to generate $3.7 billion this year; it will also reportedly see $5 billion in losses on that revenue owing to its operational costs.
OpenAI has seen a spate of leadership changes recently amid discussions about restructuring it into a for-profit entity. CEO Sam Altman has denied rumors of receiving a substantial equity stake.
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