# OpenAI Secures $4 Billion Credit Line: Here’s What It Means! 💰

**URL:** <https://onehack.st/t/openai-secures-4-billion-credit-line-here-s-what-it-means/292683>\
**Category:** News & Articles\
**Tags:** business, trading\
**Created:** [October 3, 2024, 5:42pm UTC](https://onehack.st/t/openai-secures-4-billion-credit-line-here-s-what-it-means/292683 "2024-10-03T17:42:16Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![TheJoker](https://onehack.st/user_avatar/onehack.st/thejoker/32/22660_2.png) [@TheJoker](https://onehack.st/u/TheJoker)\
**Post date:** [October 3, 2024, 5:42pm UTC](https://onehack.st/t/openai-secures-4-billion-credit-line-here-s-what-it-means/292683/1 "2024-10-03T17:42:16Z")

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**Summary:**

1. **Massive Credit Line Acquired**  
OpenAI has secured a $4 billion revolving credit line, increasing its total liquidity to over $10 billion, according to CNBC.

2. **Recent Funding Success**  
This announcement follows a recent funding round that valued OpenAI at $157 billion, where the company raised $6.6 billion from various investment firms and major tech companies.

3. **Major Investors Involved**  
The credit facility involves participation from notable financial institutions including JPMorgan Chase, Citi, Goldman Sachs, Morgan Stanley, Santander, Wells Fargo, SMBC, UBS, and HSBC.

4. **Flexible Borrowing Options**  
The base credit line is $4 billion, with the potential to increase it by an additional $2 billion. This unsecured loan can be accessed over three years, providing OpenAI with significant financial flexibility.

5. **Interest Rates Explained**  
OpenAI’s interest rate will be set at the Secured Overnight Financing Rate (SOFR) plus 100 basis points, with SOFR currently just above 5%. This means that OpenAI would effectively pay around 6% on borrowed funds.

**Read more at:** [CNBC](https://www.cnbc.com/2024/10/03/openai-gets-4-billion-revolving-credit-line-on-top-of-latest-funding.html)