OpenAI has held early talks with investors about a new private funding round that could value the ChatGPT maker at more than $1.2 trillion. This new raise comes six months after the company completed a $122 billion deal in March, which set an $852 billion value backed by major tech investors like Amazon AMZN +2.28% ▲ and Nvidia NVDA +2.61% ▲ . If completed, the new deal would serve as a final private funding step before an initial public offering. READ MORE
AI creates a mess for private equity
It's no secret that AI has become a splitting headache for private equity, or at least for funds that bought big into enterprise software.
But this isn't just a backward-looking problem, which can be temporarily stemmed by Q1 equity markdowns and maturing debt renegotiations.
Almost every industry big that spoke to Axios at the Milken Global Conference this week said that AI has created massive modeling challenges for new deals, almost regardless of sector.
Private equity is a long-term asset class, typically holding portfolio companies for a minimum of three or four years. READ MORE
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