On top of OpenAI’s long-awaited investment round, which concluded on Wednesday, the business has also put in place a $4 billion revolving credit line, boosting its total liquidity to more than $10 billion.
According to a blog post, JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS, and HSBC will provide the credit facility.
The ChatGPT maker 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”.
According to OpenAI, it is expected to make $3.7 billion this year, but because of its operating expenses, it will allegedly lose $5 billion on that revenue.
“This means we now have 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,” OpenAI wrote in a blog post, adding that the company plans to use the money to invest in research and products, expand infrastructure, and attract talent.
“It also reaffirms our partnership with an exceptional group of financial institutions, many of whom are also OpenAI customers.”
A series of leadership changes at OpenAI have occurred recently in the context of talks to restructure the company into a for-profit organisation.
CEO Sam Altman has refuted reports that he will be getting a sizable equity share.
Newsng gathered that the base credit line is $4 billion, with the option of increasing it by another $2 billion.
The loan is unsecured and can be used over a three-year period.
OpenAI’s interest rate equals the Secured Overnight Financing Rate plus 100 basis points. SOFR, a measure of the cost of borrowing cash overnight, was just over 5% as of early this week, implying that OpenAI would pay almost 6% on money borrowed immediately.
We earlier reported that OpenAI released four new tools that would make it easier for developers to create applications based on its artificial intelligence technology, as the ChatGPT manufacturer competes with IT behemoths to stay ahead in the generative AI race
