According to a report from The Wall Street Journal, research study laboratory OpenAI, the developer of ChatGPT, is considering a tender deal that would value the business at around $29 billion.
The deal would involve acquiring a specified variety of shares from existing shareholders at a repaired cost and would approximately double OpenAI’s evaluation from a previous tender deal completed in 2021, when the company was valued at around $14 billion.
The offer is apparently being worked out with equity capital companies Flourish Capital and Founders Fund. If it goes through it would make OpenAI among the most valuable startups in the United States.
The substantial increase in the company’s value is likely due in part to the widespread popularity of ChatGPT, which got over a million users within the first five days of being made available to the general public.
Given that OpenAI’s most popular item is used totally free, it might seem surprising that the company is valued so highly.
OpenAI produces millions in income by selling its AI software application to developers. OpenAI is presently supplying cloud services to Microsoft for tools that enable users to create text, code, and imagery utilizing basic directions.
Furthermore, as a research organization, OpenAI is funded through a combination of donations, sponsorships, and grants.
A few of the sources of financing for OpenAI consist of companies like Microsoft and private philanthropists such as Elon Musk and Sam Altman.
In 2019, Microsoft invested $1 billion in OpenAI, and the company has been going over the possibility of making a much bigger financial investment in the AI service, possibly worth 10s of billions of dollars.
With additional financial investment, OpenAI can deal with incorporating its AI technology with other Microsoft products.
Today, it was reported that Microsoft plans to include AI innovation from OpenAI’s ChatGPT chatbot into its Bing search engine.
See: Microsoft Bing With ChatGPT Reportedly Launching In March
ChatGPT integration will enable Bing to provide total sentences in action to search queries instead of lists of links.
The upgraded search function is expected to be available by the end of March and can potentially give Microsoft an advantage over Google.
The tender offer has not yet been settled, and the terms could alter. OpenAI decreased to talk about The Wall Street Journal’s report.