OpenAI's high valuation has some investors skeptical

OpenAI's skyrocketing valuation has some venture capital firms taking a wait-and-see approach. They're concerned about growing competition, especially from big tech, and high valuations in the AI sector, The Information reports. Specifically, Founders Fund, which acquired a stake in OpenAI in January 2023 at a valuation of $29 billion, will not participate in a planned sale of OpenAI shares at a valuation of $86 billion to increase its stake. Sequoia Capital and Khosla Ventures are also not participating in the latest round. In addition, OpenAI's unique structure, which prioritizes mission over financial return, has made some investors wary. Still, "plenty of other VC firms have been more than happy to jump into OpenAI," according to The Information. The proposed new round of funding was first reported last September, but has not yet been made official.