OpenAI has launched an ambitious fundraising effort to secure up to $100 billion for its expansion plans. If successful, this round could push the company’s valuation to about $830 billion. The company is still determining specific terms, timing, and investor appetite for the offering, which could be finalized as early as the end of the first quarter, according to a recent report.

The push for new capital comes as the cost and competition to build high-performance Artificial Intelligence systems continue to rise. OpenAI is looking for funding from major existing backers and is also seeking to expand its investor base. The company is also reportedly considering a potential initial public offering to further diversify funding options.

Earlier this year, SoftBank agreed to invest $30 billion in OpenAI, partially funded by the sale of its $5.8 billion NVIDIA stake. The company expects to receive the remainder of SoftBank’s planned $22.5 billion by year-end. Other recent deals include a $1 billion investment and content licensing agreement with Disney, and a possible approach to sovereign wealth funds, after previously working with UAE’s MGX.

This fundraising activity comes after OpenAI CEO Sam Altman declared an internal “code red,” instructing staff to focus on strengthening ChatGPT in response to new AI models from Google that surpassed OpenAI’s software in multiple areas. As referenced in a Bloomberg report, Chief Research Officer Mark Chen noted that OpenAI has implemented similar resource shifts before to prioritize core innovations. The company has since released updates to ChatGPT with improved coding and science capabilities, and launched a new model for image generation.

Looking ahead, OpenAI is planning $1.4 trillion in infrastructure investment over eight years and could spend more than $200 billion in cash by 2030. The fundraising follows a wave of AI-related deals, including a $10 billion investment from Amazon in exchange for use of its Trainium chips, as OpenAI looks to diversify its technology partnerships beyond Microsoft. However, partners such as Oracle and CoreWeave have reportedly seen downturns in market value amid concerns over large-scale data center investments.

Retail sentiment toward OpenAI has been “bearish” with high message activity, according to user data as of December 18.

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