According to a report from The Wall Street Journal, research lab OpenAI, the designer of ChatGPT, is considering a tender offer that would value the business at around $29 billion.
The deal would include buying a defined number of shares from existing investors at a repaired price and would approximately double OpenAI’s assessment from a previous tender offer finished in 2021, when the business was valued at around $14 billion.
The offer is reportedly being negotiated with equity capital firms Grow Capital and Founders Fund. If it goes through it would make OpenAI one of the most important startups in the United States.
The significant increase in the company’s worth is likely due in part to the widespread popularity of ChatGPT, which gained over a million users within the very first five days of being provided to the general public.
Considered that OpenAI’s most popular item is used totally free, it might seem unexpected that the business is valued so highly.
OpenAI creates millions in earnings by selling its AI software to designers. OpenAI is currently offering cloud services to Microsoft for tools that permit users to develop text, code, and images utilizing basic instructions.
Additionally, as a research organization, OpenAI is funded through a combination of donations, sponsorships, and grants.
Some of the sources of funding for OpenAI consist of business like Microsoft and individual benefactors such as Elon Musk and Sam Altman.
In 2019, Microsoft invested $1 billion in OpenAI, and the company has actually been discussing the possibility of making a much bigger financial investment in the AI organization, potentially worth 10s of billions of dollars.
With further financial investment, OpenAI can work on integrating its AI innovation with other Microsoft products.
Today, it was reported that Microsoft prepares to include AI technology from OpenAI’s ChatGPT chatbot into its Bing online search engine.
See: Microsoft Bing With ChatGPT Reportedly Introducing In March
ChatGPT combination will permit Bing to offer total sentences in response to search queries rather than lists of links.
The upgraded search function is expected to be offered by the end of March and can possibly offer Microsoft a benefit over Google.
The tender deal has not yet been completed, and the terms could change. OpenAI declined to talk about The Wall Street Journal’s report.