OpenAI has received a USD 4 billion revolving credit line, only one day after closing a USD 6.6 billion investment round, cementing its status as one of the world's most valuable private enterprises. The new facility, which increases its liquidity to USD 10 billion, will let the AI pioneer acquire critical processing resources like Nvidia chips as it competes with IT behemoths like Google.
The credit line was formed with major financial institutions such as JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS and HSBC. "This credit facility strengthens our balance sheet and provides flexibility to capitalise on future growth opportunities," said Sarah Friar, OpenAI's finance head.
The money comes at a critical time for OpenAI, which is racing to expand its processing capacity in the face of fierce competition in the artificial intelligence field. The company recently secured new financing at a valuation of around USD 157 billion, backed by prominent investors like Microsoft, Nvidia, Thrive financing and Khosla Ventures.
This round of fundraising, structured as convertible notes, is subject to a successful transition to a for-profit company model and the elimination of investor return caps.
Despite management changes, including the unexpected retirement of long-time CTO Mira Murati, OpenAI's outlook remains positive. CEO Sam Altman has assured investors of the company's strong growth, with sales expected to reach USD 3.6 billion this year, despite USD 5 billion in losses. According to projections, revenues might reach USD 11.6 billion by 2025.
Along with the previous funding activity, OpenAI has extended special conditions to Thrive Capital, allowing the venture firm to invest an extra USD 1 billion next year if the company reaches specific revenue targets.
