ChatGPT developer OpenAI established a $4 billion revolving line of credit with a consortium of banks the day after it announced a $6.6 billion fundraising round with prominent tech companies.
It stated in a blog that JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS, and HSBC are providing the credit facility.
OpenAI noted in its blog the company now has “access to over $10 billion in liquidity, which gives us the flexibility to invest in new initiatives and operate with full agility as we scale”.
It stated many of the financial institutions that are fuelling the revolving line of credit are also OpenAI customers.
“We are proud to have the strongest banks and investors in the world supporting us,” stated Sarah Friar, CFO of OpenAI.
While OpenAI enjoyed a first mover advantage over its rivals when it announced ChatGPT two years ago, it’s facing increased competition from other AI startups such as Anthropic and Mistral.
OpenAI now has 250 million weekly active users for ChatGPT, according to the company, but it also has a large cash burn rate due to the costly build out of its compute capabilities using high-priced GPUs from Nvidia.
Nvidia, along with Microsoft, SoftBank Group and Abu Dhabi-based MGX, took part in the $6.6 billion funding round, bringing OpenAI’s valuation to $157 billion.
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