ChatGPT creator OpenAI in investor talks valuing company at $29bn
Elon Musk founded the research organisation with investor Sam Altman
06 January 2023 - 11:54
byAkash Sriram
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OpenAI, the artificial intelligence (AI) research lab behind chatbot ChatGPT, is in talks to sell existing shares in a tender offer that would value the company at about $29bn, reports said.
The Wall Street Journal, citing people familiar with the matter, reported that the deal is structured in a way in which venture capital firms Thrive Capital and Founders Fund will buy shares from existing shareholders such as employees.
The deal would attract investment of at least $300m in share sales, it added.
Billionaire and Tesla CEO Elon Musk founded the research organisation with investor Sam Altman.
Microsoft, which invested $1bn in OpenAI in 2019, was working to launch a version of its search engine Bing using the AI behind the now viral ChatGPT, the Information reported on Tuesday.
OpenAI’s chatbot is a software application designed to mimic human-like conversation based on user prompts and can respond to a large range of questions while imitating human speaking styles.
The firm expects business to surge as it pitched to investors saying the organisation expects $200m in revenue this year and $1bn by 2024, Reuters reported in December.
OpenAI and Thrive Capital declined to comment, while Founders Fund did not immediately respond to a Reuters request for comment.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
ChatGPT creator OpenAI in investor talks valuing company at $29bn
Elon Musk founded the research organisation with investor Sam Altman
OpenAI, the artificial intelligence (AI) research lab behind chatbot ChatGPT, is in talks to sell existing shares in a tender offer that would value the company at about $29bn, reports said.
The Wall Street Journal, citing people familiar with the matter, reported that the deal is structured in a way in which venture capital firms Thrive Capital and Founders Fund will buy shares from existing shareholders such as employees.
The deal would attract investment of at least $300m in share sales, it added.
Billionaire and Tesla CEO Elon Musk founded the research organisation with investor Sam Altman.
Microsoft, which invested $1bn in OpenAI in 2019, was working to launch a version of its search engine Bing using the AI behind the now viral ChatGPT, the Information reported on Tuesday.
OpenAI’s chatbot is a software application designed to mimic human-like conversation based on user prompts and can respond to a large range of questions while imitating human speaking styles.
The firm expects business to surge as it pitched to investors saying the organisation expects $200m in revenue this year and $1bn by 2024, Reuters reported in December.
OpenAI and Thrive Capital declined to comment, while Founders Fund did not immediately respond to a Reuters request for comment.
Reuters
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