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Looks like the startup behind the top AI product, ChatGPT, is deciding to raise some money after all. According to a report by Bloomberg, OpenAI is currently in discussions to sell existing employees’ shares at an estimated $86 billion valuation, according to individuals familiar with the matter.
The company is in negotiations for this transaction, referred to as a tender offer, with potential investors. These insiders, who requested anonymity due to the confidential nature of the information, have disclosed that the firm has not yet finalised allocations, and the terms of the deal remain subject to change.
OpenAI, in which Microsoft Corp. holds a 49% ownership stake, is under the leadership of CEO Sam Altman and President Greg Brockman. If the $86 billion valuation is realised, OpenAI would become one of the world’s most valuable closely held companies, surpassing entities such as Stripe and Chinese online retailer Shein, but still ranking behind SpaceX by Elon Musk and TikTok parent company ByteDance.
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According to recent buzz around the startup, Altman has said that the company is generating revenue at a pace of $1.3 billion in a year. Moreover, the company is also planning to make its own AI chips.
Last month, the Wall Street Journal disclosed discussions about a potential share sale that could value OpenAI between $80 billion and $90 billion.
Earlier, we said that OpenAI might go bankrupt by the end of 2024. Given the revenue and reports, it might not be sure, but the company is definitely looking to increase its revenue and it seems like it is on the right track by selling its shares.