OpenAI, the artificial intelligence company, is reportedly in talks to sell shares that would significantly increase its valuation from $29 billion to an estimated range of $80 billion to $90 billion. The discussions, which are still ongoing, would allow employees to sell their existing shares instead of the company issuing new ones, according to sources familiar with the matter.
Key Takeaway
OpenAI is reportedly seeking to raise its valuation from $29 billion to an estimated $80-$90 billion by selling shares. This move would allow employees to sell their existing shares. OpenAI has achieved success with its generative AI assistant, ChatGPT, and aims to generate
billion in revenue by 2023.
Positive Developments for OpenAI
In April of this year, OpenAI secured over $300 million in funding from major backers like Sequoia Capital, Andreessen Horowitz, Thrive, and K2 Global. This funding round brought the company’s valuation to $29 billion. Additionally, OpenAI received a substantial investment from Microsoft earlier this year, estimated to be around $10 billion, further strengthening its financial position.
One of OpenAI’s standout achievements is the launch of their AI-powered assistant called ChatGPT. Since its introduction nine months ago, ChatGPT has gained immense popularity, allowing users to produce essays, poems, and summaries simply by providing text-based prompts. Recent reports suggest that ChatGPT is set to become even more interactive, enabling users to engage in voice conversations with the AI assistant.
Impressive Revenue Projections
OpenAI, in which Microsoft holds a 49% stake, has set ambitious revenue targets. The company announced in late August that it anticipates reaching a milestone of $1 billion in revenue by 2023. The projected increase in valuation would further solidify OpenAI’s market position and provide additional resources for research and development in the field of artificial intelligence.
