OpenAI is offering big incentives to private equity firms in a bid to raise more funds. The ChatGPT-maker is offering a minimum return rate of 17.5 per cent, as well as early access to its new AI models. As per reports, the Sam Altman-led firm is hoping to secure a stronger footing in the enterprise market following Anthropic’s lead.

Sam Altman offers 17.5% returns, ChatGPT exclusives to raise more money for OpenAI

OpenAI seems to be going all-in to attract private equity firms. The Sam Altman-led AI startup is trailing behind Anthropic in the enterprise market and hopes to form joint ventures with equity firms to accelerate its enterprise AI adoption. As per reports, the company is offering a higher rate of returns as well as early access to its models to lure more investors.

As per Reuters, OpenAI is offering a guaranteed minimum return of 17.5 per cent to private equity firms. Usually, the rate of return does not exceed 10 per cent. This is believed to be part of the company’s strategy to accelerate its AI adoption.

The ChatGPT-maker is targeting major firms such as TPG, Bain Capital, Advent International with this proposal, which is reportedly more attractive than similar offers from rival Anthropic.

Do note that reports indicate that Anthropic does not offer any guaranteed returns in its private equity deals.

OpenAI recently went into code red mode as it struggles to catch up with Anthropic in the enterprise market. The Sam Altman-led firm has now switched focus on enterprise tools and is also working on a new super app.

How will this deal work?

As part of the deal, OpenAI will form joint ventures with these firms who will then deploy the company’s AI products across their portfolio companies, potentially opening a vast market opportunity.

OpenAI hopes to raise about $4 billion at a pre-money valuation of approximately $10 billion. In exchange, investors receive preferred equity stakes and early access to the latest AI models.

Though as per the report, firms remain cautious. At least two have declined participation, citing financial concerns.

Why OpenAI needs more funding

Despite having the most widely used AI tool in the world, OpenAI remains in a tricky financial situation. The company is estimated to be burning cash at a high rate. The Sam Altman-led startup estimates that it will lose around $14 billion in 2026 alone.

Despite surpassing one million business customers, OpenAI’s revenue per user remains significantly lower than Anthropic. This has put financial strain on OpenAI as the AI startup needs more funds to further develop its models.

OpenAI recently raised $110 billion from Amazon, Nvidia and Softbank, reaching a valuation of $840 billion.

OpenAI may go public soon

OpenAI is believed to be planning an IPO soon. As per CNBC, a document that resembles an IPO prospectus reveals that the company considers its heavy dependence on Microsoft as a potential risk for its growth.

Microsoft was an early investor in OpenAI, having given the company $13 billion so far. After OpenAI switched to a for-profit structure in October last year, Microsoft’s stake was diluted to 27 per cent.

The Redmond-based giant’s Azure cloud service also has exclusive rights over hosting OpenAI’s models until 2032 or till AGI is reached. However, the AI startup recently signed a deal with Amazon to run its models on Amazon’s cloud servers.

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