Safe Superintelligence in Talks for $20 Billion Valuation Despite No Revenue

Safe Superintelligence (SSI), the AI startup co-founded by former OpenAI chief scientist Ilya Sutskever, is in early talks to raise new funding at a valuation of at least $20 billion, according to Reuters. The figure represents a fourfold increase from its $5 billion valuation last September, despite the company having yet to generate any revenue.

Key Points:

• SSI is seeking investment at a $20 billion valuation, up from $5 billion last year.
• The startup has raised $1 billion so far, with backing from Sequoia, Andreessen Horowitz, and DST Global.
• The company remains secretive about its research but aims to build “safe superintelligence.”

The intense investor interest in SSI, which has yet to generate revenue, largely stems from Sutskever's reputation in the AI field and his team's promised novel approach to developing safe artificial intelligence. While the exact funding amount remains undisclosed, the potential valuation represents a remarkable leap from the company's $5 billion value established during its $1 billion raise last September.

Safe Superintelligence Raises $1 Billion, Reaching $5 Billion Valuation in Just Three Months

The funding round attracted heavyweight Silicon Valley investors, including Andreessen Horowitz, Sequoia Capital, DST Global, and SV Angel.

MaginativeChris McKay

SSI has reportedly told investors "We intend to scale in peace by insulating our progress from short-term commercial pressures," . This patient approach stands in stark contrast to other AI labs that have pivoted toward commercial products, including Sutskever's former employer OpenAI, which generated nearly $4 billion in revenue last year.

The funding discussions arrive during an intriguing period for AI valuations. Chinese startup DeepSeek recently demonstrated that top-tier AI models could be developed at significantly lower costs than previously thought possible, prompting market reassessment of AI investments. This development had ripple effects across the industry, including a substantial impact on NVIDIA's market capitalization.

Chinese AI Upstart DeepSeek Triggers Historic Tech Selloff

Despite US Government’s trade restrictions limiting access to advanced AI chips, DeepSeek was nevertheless been able to develop a frontier open-source model.

MaginativeChris McKay

Despite these market dynamics, major investors appear undeterred. SSI has already attracted heavyweight backers including Sequoia Capital, Andreessen Horowitz, and DST Global. The company's founding team brings together impressive credentials, with Daniel Gross, former head of AI initiatives at Apple, and Daniel Levy, an ex-OpenAI researcher, joining Sutskever at the helm.

Sutskever's track record likely plays a crucial role in investor confidence. He was instrumental in developing the technical foundations that made ChatGPT possible and led the team behind OpenAI's reasoning models. In a previous Reuters interview, Sutskever, 38, described SSI's work as "a new mountain to climb," though specific details about the company's technical approach remain closely guarded.

These funding discussions reflect a broader trend in AI investment, where companies focused on fundamental research continue to command premium valuations. OpenAI is reportedly in talks to reach a $300 billion valuation, while Anthropic is finalizing funding that would value it at $60 billion. However, SSI's distinctive focus on developing safe superintelligence – AI systems smarter than humans while remaining aligned with human interests – sets it apart in an increasingly crowded field.