OpenAI accelerates $30 billion fundraising ahead of expected Anthropic IPO
Key Facts
OpenAI is seeking to accelerate a funding round of about $30 billion to secure investor commitments ahead of rival Anthropic's expected initial public offering, sources told Reuters. The sources said the round could value the company at more than $1.4 trillion. SoftBank is in talks to participate in the financing, according to a source cited by the agency. The talks also include Abu Dhabi-based MGX. Other existing investors are considering joining the round, which the company is working to accelerate before its rival's public market debut.
OpenAI told investors its annual revenue run rate had reached $50 billion, according to a source who spoke to Reuters about the funding talks. The company expects that figure to rise to $70 billion by year-end, the same source said. OpenAI previously announced the close of a funding round in which it raised $122 billion in committed capital. The company's valuation following that round was $852 billion, according to its announcement of the financing's completion. The potential valuation Reuters reported for the round under discussion would put the company above the valuation announced after the previous round.
Against the backdrop of these talks, OpenAI's relationship with Nvidia extends to the infrastructure underpinning model training and operation. OpenAI said, "Nvidia remains the foundation of our infrastructure," explaining that its training fleet and most of its inference stack run on the company's graphics processors. For the Ohio data center project, Nvidia's credit support covers an initial 4.25 gigawatts of computing capacity, with an option to support an additional 3.75 gigawatts. SB Energy will build, own and operate the center under a 20-year lease with OpenAI. Nvidia also announced a $1.5 billion investment in SB Energy as part of the project announcement.
Nvidia's total commitment under the Ohio project guarantees is capped at $105 billion, according to its quarterly financial disclosure. The commitment is subject to conditions concerning the infrastructure's readiness to enter service, while each guarantee generally takes effect when its associated lease begins. The guarantees cover specified portions of lease and power payments due under the project arrangements. Coverage does not extend to the site's entire cost or all of the tenant's obligations, according to the terms in the disclosure. Nvidia's exposure under these arrangements declines as OpenAI makes lease payments, the company said.
As for the cost of connecting the center to power infrastructure, OpenAI said SB Energy would bear the full cost of grid upgrades needed for the site. That also includes the cost of new transmission lines required by the data center, according to the company's project statement. OpenAI said, "These costs will not be passed on to Ohio or other electricity consumers in the region." For cooling, the company plans to use closed-loop, air-based systems at the center. The planned cooling arrangements include recycling the water used, according to OpenAI's announcement on the design of the site's systems.
OpenAI aims to secure investor commitments before mid-November, when Anthropic is expected to make its public debut, according to Reuters. Nvidia expects the planned computing capacity at the Ohio project to start coming online in phases from 2028. Each guarantee generally takes effect when its associated lease begins, according to Nvidia's disclosure of the terms of its commitments. The guarantees can terminate upon specified events, including OpenAI obtaining a satisfactory credit rating. OpenAI has pledged to publish the center's expected water use once the site design is complete.