OpenAI has secured a significant financial boost by establishing a $4 billion revolving line of credit from leading global banks, including JPMorgan Chase, Citigroup, Goldman Sachs, and Morgan Stanley. This credit facility adds to OpenAI’s recent $6.6 billion fundraising, providing the company with access to over $10 billion in liquidity. This substantial financial support is designed to fuel the company’s ambitions of scaling its artificial intelligence (AI) technology, allowing for increased investment in infrastructure, talent, and operational expansion.
In a statement on Thursday announcing the credit facility, Sarah Friar, OpenAI’s Chief Financial Officer, “This credit facility further strengthens our balance sheet and provides flexibility to seize future growth opportunities. We are proud to have the strongest banks and investors in the world supporting us.”
On CNBC, she also emphasized the importance of these resources, particularly in supporting the high costs associated with AI development, such as computational resources and skilled talent. “It’s compute first, and it’s not cheap,” Friar noted, highlighting that scaling AI requires significant financial investment in both cutting-edge technology and top talent.
The credit facility marks a major step in OpenAI’s continued growth as it competes in the rapidly advancing AI space.
A couple of hours ago, the company declared that it secured $6.6 billion in investments, resulting in a post-money valuation of $157 billion.
With this financial backing, the company now has greater flexibility to pursue new initiatives and remain agile while meeting its ambitious goals of revolutionizing AI technology. This development follows reports earlier in the year about OpenAI’s discussions with banks to raise additional funds in the form of debt, indicating its strategic financial planning to meet its growth targets.
