OpenAI gets $4 billion revolving credit line, giving it more than $10 billion in liquidity
OpenAI has a $4 billion revolving line of credit, bringing its total liquidity to more than $10 billion, CNBC has learned. It follows news Wednesday that OpenAI closed its recent funding round at a valuation of $157 billion, including the $6.6 billion the company raised from an extensive roster of investment firms and big tech companies.
JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS, and HSBC all participated.
The base credit line is $4 billion, with an option to increase it by an additional $2 billion. The loan is unsecured and can be tapped over the course of three years. OpenAI's interest rate is equal to the Secured Overnight Financing Rate plus 100 basis points. SOFR, a measure of the cost of borrowing cash overnight, sat at just over 5% as of early this week, meaning OpenAI would be paying roughly 6% on money that it borrows right away.
"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 Thursday 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."
OpenAI's latest funding round included an extensive roster of investment firms and big tech companies. Led by Thrive Capital, which planned to invest $1 billion, investors included existing backer Microsoft as well as chipmaker Nvidia. SoftBank, Khosla Ventures, Altimeter Capital, Fidelity Management & Research Co., MGX and Tiger Global also participated, according to sources familiar with the