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Bank of America Extends $520 Million Credit Line to OpenAI, Source Says
Summary
According to a person familiar with the matter, Bank of America has provided a $520 million loan to OpenAI, its first to the AI company as it prepares for a potential initial public offering.
Bank of America has extended a $520 million credit line to OpenAI, marking the bank's first loan to the artificial intelligence firm, a person familiar with the matter told Reuters. The move comes as OpenAI prepares for a highly anticipated initial public offering (IPO).
The loan positions Bank of America as one of OpenAI's most significant lenders and reinforces its role in AI-related capital markets financing, the source added. The information was shared on the condition of anonymity as the details are confidential. OpenAI has not issued a public comment on the matter.
This development follows reports that OpenAI confidentially filed for a U.S. IPO last month. The creator of ChatGPT is reportedly targeting a valuation of more than $1 trillion in a public listing that could occur as soon as this year. Such large-scale IPOs are typically highly sought after by Wall Street banks due to the substantial fees and potential for future business.
AdAccording to a second source, the second-largest U.S. lender is also seeking advisory roles in the planned IPOs for both OpenAI and its competitor, Anthropic. OpenAI was founded in 2015 as a nonprofit research organization and established a for-profit arm in 2019 to help finance the high costs associated with developing advanced AI systems.