OpenAI is reportedly in advanced discussions with major tech companies and sovereign wealth funds from the Middle East to raise up to $100 billion in a new funding round, potentially valuing the artificial intelligence company at $750 billion or higher, according to sources familiar with the matter.

Those familiar with the negotiations, who spoke on condition of anonymity, emphasized that the figure is not final and that discussions are ongoing with several potential investors, including Nvidia, Amazon, Microsoft, and the Japanese conglomerate SoftBank.

Currently, OpenAI holds a valuation of $500 billion, ranking it among the world’s most valuable private firms alongside SpaceX and ByteDance, the company behind TikTok. Based in San Francisco, OpenAI is also reportedly exploring the possibility of an initial public offering later this year.

Despite its high valuation, OpenAI is not profitable and is spending vast sums to secure the computing resources required to develop and deploy its AI technologies. Last year, the company, which generates revenue through subscriptions for its ChatGPT chatbot and other AI services, reported $13 billion in revenue and expects to triple that figure this year. Nevertheless, OpenAI plans to spend $115 billion between 2025 and 2029, part of a long-term commitment of $1.4 trillion for computing infrastructure.

OpenAI completed its previous funding round in March, receiving the final portion of the $40 billion raised at the end of last year. Its past investors include Nvidia, Microsoft, SoftBank, and the United Arab Emirates, many of whom are involved in the current discussions as well.

Earlier reports from The Information and The Financial Times highlighted aspects of OpenAI’s funding plans.

When OpenAI launched ChatGPT in late 2022, it quickly established a technical edge over competitors such as Anthropic and Google, maintaining that lead for more than two years. However, companies in both the U.S. and China have since developed AI technologies that rival or even surpass OpenAI’s models.

This growing competition has increased the pressure on OpenAI to diversify its revenue streams. The company recently introduced advertising on the free version of ChatGPT, which has over 800 million users. Paid subscriptions, which cost $20 per month, account for roughly 6 percent of the user base and provide access to a more advanced version of the chatbot. OpenAI is also expanding its offerings to enterprise customers in sectors like healthcare and finance.

Historically, OpenAI has raised capital from strategic partners that also supply products and services to the company. Microsoft invested $1 billion in 2019, alongside agreements to provide computing power. More recently, OpenAI reached a deal with Nvidia to purchase computer chips, which includes a $100 billion investment from the chipmaker.

Microsoft’s close ties to OpenAI have raised concerns about potential risks. In its latest quarterly earnings report, Microsoft revealed it has $625 billion in commercial contracts, including cloud services and productivity software, with future commitments from customers. Nearly half of this amount is linked to OpenAI, prompting questions from analysts about the company’s reliance on the AI start-up.

Brent Thill, an analyst at Jefferies, noted, “There’s obviously concern about the durability. I think everyone is concerned about the exposure.”

Amy Hood, Microsoft’s chief financial officer, reassured investors that even without OpenAI, the company holds approximately $350 billion in contracts with other clients. She also emphasized the strategic value of the partnership, stating, “We sit under one of the most successful businesses built, and we continue to feel quite good about that.”