OpenAI is in discussions to secure funding that would place its valuation above $100 billion.

• CNBC has learned that OpenAI is in discussions to secure a funding round that would value the AI startup at over $100 billion.
• According to a source, Thrive Capital would lead the round and invest $1 billion.

CNBC has learned that OpenAI is in discussions to secure a funding round that would value the AI startup at over $100 billion.

According to a source who requested anonymity due to confidentiality, Thrive Capital is leading the round and will invest $1 billion.

OpenAI's value increased from $29 billion to $80 billion earlier this year, with annualized revenue surpassing $2 billion. The company's growth accelerated in late 2022 with the launch of ChatGPT and has continued with the release of business products, AI-generated photos, and videos.

Microsoft, the biggest backer of OpenAI, is also participating in the round of talks, according to the Wall Street Journal, which was first to report on the discussions. Microsoft declined to comment.

Last week, OpenAI announced the launch of a prototype of its search engine, SearchGPT, which promises to deliver quick and accurate answers with reliable sources.

The company plans to integrate the tool currently being tested with a small group of users into its ChatGPT chatbot in the future.

The release of ChatGPT has caused Alphabet investors to worry that OpenAI may take market share from Google in search by offering consumers alternative ways to find information online.

OpenAI is currently testing a prototype that allows users to search and ask follow-up questions in a more natural and intuitive manner, similar to how one would in a conversation.

"Sam Altman, CEO of OpenAI, believes there is potential to improve search significantly," he stated in a post on X on Thursday.

An OpenAI spokesperson declined to comment.

CNBC's Jordan Novet contributed to this report.