The news: OpenAI is transitioning from a nonprofit company to one of the most valuable private companies in the world—behind only TikTok-owner ByteDance and SpaceX—as it chases $7 billion in investments to place its value in the vicinity of $150 billion.
Potential investors in OpenAI’s latest funding round include Thrive Capital, Apple, Nvidia, and Microsoft. The company is also reportedly in talks with MGX, a United Arab Emirates-backed investment fund.
Why it’s worth watching: The influx of new capital raises the stakes in the already-competitive AI segment and would drive up expectations for OpenAI to expand its suite of products and generate profits.