OpenAI recently announced a $6.6 billion capital raise, with the company’s stance against investors diverting funds to other companies. One might wonder just how much cash OpenAI is seeking, considering the hefty sum of $6.6 billion.
According to CNBC, sources have revealed that OpenAI has requested a $4 billion credit line, along with plans for additional capital injection in this round. This brings the total cash reserves of the company to over $10 billion, with lenders including JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS, and HSBC.
The terms of this credit line allow OpenAI to request an additional $2 billion without collateral, with a 3-year withdrawal period and a floating interest rate around 6%.
Despite OpenAI’s significant revenue growth in the past year, operating costs have also escalated. This year’s figures are projected to incur losses of approximately $5 billion, attributed to processing costs and employee salaries.
TLDR: OpenAI secures a substantial capital raise, including a $4 billion credit line, totaling over $10 billion in cash reserves. Operating costs are projected to result in a $5 billion loss this year.
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