The credit facility will increase its liquidity to $10 billion, OpenAI said, allowing the startup to buy expensive computing capacity, including Nvidia chips, as it races with tech giants like Alphabet-owned Google.
“This credit facility further strengthens our balance sheet and provides flexibility to take advantage of future growth opportunities,” said OpenAI CFO Sarah Friar.
The credit line is with JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS and HSBC.
The startup at the heart of the generative AI boom on Wednesday raised new funding at a valuation of nearly $157 billion from returning venture capital investors including Thrive Capital and Khosla Ventures.
Its largest corporate sponsor, Microsoft, and its new investor, Nvidia, also joined in the financing that came in the form of convertible notes.
The conversion to equity depends on a successful structural change towards a for-profit company and the removal of the cap on returns for investors.
The latest financing coincided with executive changes, including the abrupt departure of Chief Technology Officer Mira Murati last week.
The personnel changes have not dampened the enthusiasm of most investors, who expect significant growth according to CEO Sam Altman’s projections.
The company is on track to generate $3.6 billion in revenue this year, even as losses rise to more than $5 billion. It expects a significant increase in revenue next year to $11.6 billion, according to sources familiar with the figures.
OpenAI also offers Thrive Capital a sweetener that no other investor is getting: the potential to invest another $1 billion next year at the same valuation if the AI company hits a revenue target, Reuters reported last month.
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