OpenAI Approaches Record Funding as Macron Prioritizes Child Protection at G7

SadaNews Economy - Developments in the world of artificial intelligence and related policies are accelerating, as OpenAI is nearing the completion of a record funding round that could exceed $100 billion, at a time when French President Emmanuel Macron is prioritizing the protection of children from the risks of technology and AI at the top of his G7 presidency, while Mark Zuckerberg faces a trial related to accusations of addiction in children to social media.

In detail, OpenAI is finalizing the first phase of a new funding round expected to bring in more than $100 billion, according to sources familiar with the matter, in a record funding deal that would provide the startup with additional capital to build its AI tools.

This comes as French President Emmanuel Macron places the protection of children from social media and AI at the top of the priorities of his G7 presidency.

During the AI summit in New Delhi, the French president confirmed that children should not be exposed to legally prohibited content online.

He stated that protecting children from the harms of AI and digital abuse is a top priority of his G7 presidency.

Macron also urged India, led by Prime Minister Narendra Modi, to join the "Alliance of the Willing" initiative to support these measures.

As the maker of ChatGPT prepares to spend trillions of dollars on infrastructure investments, the company's overall valuation, including final funding, may exceed $850 billion, according to some sources.

This is higher than the initially expected $830 billion. One source indicated that the company's value before funding will remain at $730 billion. They requested anonymity as they discussed private information.

If these companies invest near the upper limits that have been discussed, these commitments could approach $100 billion. It is expected that these companies will finalize their shares by the end of this month, according to some sources.

The next phase of the deal, which will include venture capital firms, sovereign wealth funds, and other financial investors, is expected to close later, potentially raising the total fund-raising amount to a much higher level, according to some sources.

Some sources indicated that the deal has not been finalized yet, and details may change. Representatives from OpenAI, Amazon, Nvidia, SoftBank, and Microsoft declined to comment or did not respond immediately to requests for comment.

Regarding the upcoming deal, Amazon is expected to invest up to $50 billion, while SoftBank is likely to invest about $30 billion, and Nvidia has discussed injecting $20 billion, as previously reported by Bloomberg.

The funds are expected to come from corporate investors in several installments over the course of this year, according to some sources.

As part of its partnership with Amazon, OpenAI is expected to expand its use of the company's chips and cloud computing services, according to one source.