Huge Altcoin’s Price Soars as United Arab Emirates Shows Interest in Investing in the Firm
A state-backed investment firm from the United Arab Emirates (UAE) is currently in discussions to invest in OpenAI, the renowned artificial intelligence company responsible for the widely popular chatbot, ChatGPT. As news of the potential investment broke, the value of Worldcoin (WLD), the altcoin backed by OpenAI, experienced a significant surge of about 15%.
This potential investment is part of a multibillion-dollar funding round for the American-based AI startup. Sources familiar with the matter revealed that UAE’s MGX, an investment firm established earlier this year with a focus on AI projects, is currently in negotiations regarding the size of their investment in OpenAI. If the deal is finalized, it would not only strengthen the UAE’s relationship with one of the leading AI companies globally but also further their ambitions of being at the forefront of the AI revolution.
OpenAI is reportedly seeking to raise up to $6.5 billion in this funding round, which could potentially value the company at $150 billion. This valuation signifies a substantial increase from its previous valuation of $86 billion last year, indicating the growing confidence investors have in generative AI and OpenAI’s dominant position in the industry.
Thrive Capital, a prominent venture capital firm, is expected to spearhead the funding round by committing $1 billion. Additionally, tech giants like Microsoft, Apple, and Nvidia have been reported to be in talks to join the funding round as well, according to earlier reports from The Wall Street Journal and Bloomberg.
To attract more investors, OpenAI CEO Sam Altman also discussed potential changes to the company’s corporate structure. Currently operating as a nonprofit subsidiary with limited profit sharing for investors, Altman mentioned the possibility of lifting the profit cap while keeping its nonprofit status intact.
Despite not yet being profitable, OpenAI has been experiencing rapid growth. Altman revealed that the company’s annual recurring revenues recently surpassed $4 billion, a strong indicator of its financial momentum as it expands its range of AI offerings.
*This information is not intended as investment advice.