OpenAI seeks exclusive funding deal as it asks investors to avoid rival start-ups

OpenAI has requested investors to refrain from supporting rival start-ups like Anthropic and Elon Musk's xAI. This move aims to secure an exclusive funding arrangement as OpenAI approaches a $6.5 billion funding round, valuing the company at $150 billion. The exclusivity could limit rivals' access to capital and partnerships, intensifying competition, especially with Musk, who is currently suing OpenAI. While some venture firms typically invest in multiple AI companies, OpenAI's strong position allows it to demand unusual terms. OpenAI is also restructuring to shift from its non-profit roots, allowing for greater profit potential. Recent leadership changes and Musk's lawsuit, which challenges OpenAI's partnership with Microsoft, add to the company's complexities as it seeks new investments.