OpenAI, the company behind the popular AI chatbot ChatGPT, is reportedly in discussions to raise several billion dollars in a new funding round that could value the startup at over $100 billion, according to sources familiar with the matter as reported by the Wall Street Journal.

Thrive Capital, a New York-based venture capital firm founded by Josh Kushner, is set to lead the round with an investment of approximately $1 billion. Microsoft, a longtime backer of OpenAI, is also expected to contribute to this funding round.

This development comes a little over a month after a recent report by The Information suggested that the artificial intelligence firm is on track to lose up to $5 billion in 2024.

Read more: Is OpenAI Running Out of Funds?

This potential investment would mark the largest influx of outside capital into OpenAI since Microsoft‘s substantial $10 billion investment in January 2023. The AI industry has since seen intense competition among tech giants to develop cutting-edge artificial intelligence systems, with many believing these advancements will revolutionize various sectors of the economy.

OpenAI’s last known valuation was $86 billion in late 2023, based on employee share sales. The current funding talks could push that figure significantly higher, potentially exceeding $100 billion. Recent negotiations for the sale of existing OpenAI shares have reportedly valued the company at $103 billion.

The AI landscape is becoming increasingly competitive, with major players like Google, Amazon, and Meta Platforms all making significant investments in AI technology. Despite this, ChatGPT remains the market leader with hundreds of millions of monthly users.

Read more: SearchGPT: OpenAI’s Bold Move to Challenge Google’s Search Supremacy

To maintain its competitive edge, OpenAI requires substantial funding for ongoing research, development of new products, and the creation of more advanced AI models. The company’s ambitious goal of achieving artificial general intelligence — defined as systems that can outperform humans in most economically viable tasks — demands significant financial resources.

OpenAI’s unique structure as a nonprofit with a for-profit subsidiary means that investors don’t technically own equity but instead are entitled to a share of the for-profit entity’s profits. Microsoft, which recently stepped down from its nonvoting board position at OpenAI partly in response to regulatory scrutiny, currently holds a 49% share of OpenAI’s profits following its $13 billion investment since 2019.

Information for this story was found via the Wall Street Journal, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.