OpenAI gets $4 billion credit line just days after $6.6 billion funding round

• OpenAI recently raised $6.6 billion in funds bringing its value to $157 billion

Stay Informed

OpenAI has obtained a $4 billion revolving credit line just days after raising $6.6 billion in a funding round. 

This new boost in finances raises the AI company’s liquidity to $10 billion. 

The credit line was secured from major banks, including JPMorgan Chase, Citi, and Goldman Sachs, to fund key computing resources like Nvidia chips, which are deemed crucial for AI advancements.

OpenAI is preparing for rapid expansion and technological advancements as it positions itself alongside other industry giants, such as Google and Microsoft. 

For-profit transition

“This credit facility further strengthens our balance sheet and provides flexibility to seize future growth opportunities,” said OpenAI CFO Sarah Friar. “We are proud to have the strongest banks and investors in the world supporting us.”

Last week, OpenAI raised funds at a nearly $157 billion valuation from investors like Thrive Capital, Khosla Ventures, Microsoft, and Nvidia. 

According to Mobile Marketing Reads, the funding which was made via convertible notes, is contingent on OpenAI transitioning to a fully for-profit model. 

CEO Sam Altman projects $3.6 billion in revenue for 2024, rising to $11.6 billion by 2025, despite expected losses exceeding $5 billion. 

Thrive Capital may invest another $1 billion next year if OpenAI meets its revenue targets.