According to a report from The Wall Street Journal, research study lab OpenAI, the developer of ChatGPT, is thinking about a tender deal that would value the business at around $29 billion.
The offer would include buying a specified variety of shares from existing shareholders at a repaired price and would roughly double OpenAI’s evaluation from a previous tender offer finished in 2021, when the business was valued at around $14 billion.
The offer is reportedly being negotiated with venture capital firms Grow Capital and Founders Fund. If it goes through it would make OpenAI one of the most valuable startups in the United States.
The considerable boost in the business’s value is likely due in part to the extensive appeal of ChatGPT, which gained over a million users within the very first five days of being made available to the public.
Given that OpenAI’s most popular item is used for free, it may seem unexpected that the company is valued so extremely.
OpenAI produces millions in earnings by selling its AI software to developers. OpenAI is presently supplying cloud services to Microsoft for tools that allow users to develop text, code, and images using simple directions.
Furthermore, as a research organization, OpenAI is funded through a combination of donations, sponsorships, and grants.
Some of the sources of funding for OpenAI include business like Microsoft and individual benefactors such as Elon Musk and Sam Altman.
In 2019, Microsoft invested $1 billion in OpenAI, and the business has been talking about the possibility of making a much bigger investment in the AI company, potentially worth tens of billions of dollars.
With additional financial investment, OpenAI can work on integrating its AI innovation with other Microsoft items.
This week, it was reported that Microsoft prepares to integrate AI innovation from OpenAI’s ChatGPT chatbot into its Bing online search engine.
See: Microsoft Bing With ChatGPT Reportedly Introducing In March
ChatGPT integration will allow Bing to supply complete sentences in response to browse queries rather than lists of links.
The upgraded search function is expected to be available by the end of March and can potentially provide Microsoft an advantage over Google.
The tender offer has actually not yet been completed, and the terms might alter. OpenAI decreased to talk about The Wall Street Journal’s report.