One day after closing a $6.6 billion investment round that solidified its place among the world’s most valuable private companies, OpenAI has now received a new $4 billion revolving credit line.
As part of its competition with digital behemoths like Alphabet-owned Google (GOOGL.O), OpenAI claimed that the borrowing facility would increase its liquidity to $10 billion, enabling the business to purchase expensive processing capacity, including Nvidia (NVDA.O).
A blog post states that HSBC, JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, and UBS will supply the credit facility.
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The creator of ChatGPT now has “access to over $10 billion in liquidity, which gives us the flexibility to operate with full agility as we scale and invest in new initiatives.”
OpenAI estimates that it will make $3.7 billion this year, but it will reportedly lose $5 billion on that revenue due to running costs.
“This means we now have access to over $10 billion in liquidity, which gives us the flexibility to invest in new initiatives and operate with full agility as we scale,” OpenAI wrote in a blog post, adding that the company plans to use the money to invest in research and products, expand infrastructure, and attract talent.
“It also reaffirms our partnership with an exceptional group of financial institutions, many of whom are also OpenAI customers.”
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Last modified: October 6, 2024
