Welcome to the Tech Mem Right Home for Thursday, September 12th, 2024. I'm Brian McCullough today.

As expected, Open AI is in talks for a new capital raise at a $150 billion valuation.

More layoffs in Microsoft's gaming division, more holes poked in our creaking internet infrastructure,

the tiny SpaceX competitor whose stock has been soaring lately and a look at what

Apple's recent AirPods announcement could do to the hearing aid industry.

Here's what you missed today in the world of tech. Sources are telling Bloomberg that Open AI is in talks to raise $6.5 billion in equity

financing at a $150 billion valuation, but also at the same time to raise $5 billion in debt from banks in the form of a revolving credit facility, quoting Bloomberg.

The new valuation, a figure that doesn't include the money

being raised, is significantly higher than the $86 billion valuation from the company's

tender offer earlier this year and cement its place as one of the most valuable startups in the world.

The funding round is slated to be led by Thrive Capital, Bloomberg previously reported.

Thrive declined to comment on the latest valuation.

Microsoft, the company's largest investor, is also set to participate, and Apple and

NVIDIA have been in talks about investing as well. Open AI is not the first major

tech startup to turn to Wall Street Banks for a revolving credit facility.

A slew of technology companies including Facebook, Alibaba, Uber, and DoorDash have

tapped Wall Street for credit lines before pursuing an initial public offering,

often in part to strengthen banking relationships.

Historically, companies tend to reward banks that make big credit commitments with roles on their

IPOs. In return, lenders sometimes offer better terms on the financing.

In a memo to employees last month, Open AI Chief Financial Officer Sarah Friar said the

financing will support the need for computing power and other operating expenses, Bloomberg reported.

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