OpenAI, the firm responsible for creating ChatGPT, is in discussions with investors regarding a potential sale of existing shares, which now have a markedly higher valuation compared to a few months prior, as per two sources.
According to a report by the Wall Street Journal, which initially covered the potential share sale, the suggested transaction could place the valuation of Microsoft-backed (MSFT.O) OpenAI between $80 billion to $90 billion. This would rank OpenAI among the globe’s most highly valued private entities, particularly during a period of escalating excitement surrounding AI startups, following last year’s launch of ChatGPT.
Should the deal come to fruition, it would represent the second significant secondary share sale by the prominent San Francisco-based startup, indicating a remarkable surge in valuation. A share sale earlier this year, amounting to $300 million, had placed the startup’s valuation at $30 billion.
Since its introduction late last year, OpenAI’s highly acclaimed generative AI assistant, ChatGPT, has emerged as one of the most significant technology triumphs of recent times, enabling users to craft essays, poems, and summaries through straightforward text-based prompts. Yesterday, the AI Insider also revealed that ChatGPT is on the verge of becoming much more interactive, allowing users to engage in voice conversations with the chatbot.
This year, OpenAI secured $10 billion in primary funding from Microsoft, funds which are allocated towards the development of new products and the financing of AI model training.
In late August, the AI firm, with a 49% stake held by Microsoft, projected that it would hit a revenue milestone of $1 billion in 2023.
