Insider Brief
- OpenAI is in discussions to sell shares owned by existing employees at a valuation of $86 billion through a tender offer, though the allocations and terms are not yet finalized.
- If successful, this would place OpenAI among the world’s most valuable private companies, surpassing Stripe and Shein, and positioning it just behind SpaceX and ByteDance.
- The company, 49% owned by Microsoft and led by CEO Sam Altman, is reportedly on track to achieve $1 billion in annual revenue, driven by widespread adoption of its technology, including ChatGPT.
PRESS RELEASE — October 19, 2023/(Bloomberg) — OpenAI is in talks to sell existing employees’ shares at an $86 billion valuation, according to people with knowledge of the matter.
The artificial intelligence startup behind ChatGPT is negotiating the transaction, known as a tender offer, with potential investors, said the people, who asked not to be identified discussing confidential information. The firm hasn’t finalized allocations and terms could still change, some of the people said.
OpenAI, which counts Microsoft Corp. as a 49% owner, is led by Chief Executive Officer Sam Altman and President Greg Brockman. At $86 billion, it would leapfrog the likes of Stripe and Chinese online retailer Shein to become one of the world’s most valuable closely held companies, behind Elon Musk’s SpaceX and TikTok parent ByteDance.
A representative for San Francisco-based OpenAI declined to comment.
The company is on track to generate $1 billion of annual revenue as businesses adopt the technology, Bloomberg reported in August.
Last month, the Wall Street Journal reported that OpenAI was discussing a potential share sale that would value the startup at $80 billion to $90 billion.
