OpenAI, the prominent artificial intelligence startup renowned for innovations such as ChatGPT, is currently in discussions with investors regarding a potential sale of existing shares at a significantly higher valuation compared to just a few months ago, as disclosed by sources closely familiar with the matter.
The proposed transaction, as reported initially by the Wall Street Journal, could potentially assign a valuation to OpenAI, with the backing of technology giant Microsoft, ranging between $80 billion to $90 billion. This development positions OpenAI as one of the world’s most esteemed private companies, coinciding with a period of burgeoning enthusiasm surrounding AI startups, largely catalyzed by the introduction of last year.
ChatGPT, recognized for its ability to generate human-like responses based on user inputs, has been instrumental in fueling the widespread adoption of AI technologies. The AI sector, hailed as the next frontier in technological advancement, has emerged as a prominent buzzword in Silicon Valley.
Should this agreement be successfully concluded, it would represent the second substantial secondary share sale undertaken by the high-profile San Francisco-based startup. This endeavor symbolizes an extraordinary surge in the company’s valuation. Earlier this year, OpenAI executed a share sale, amassing $300 million and securing a valuation of $30 billion.
Established entities like SpaceX, along with other mature startups, have frequently engaged in private share sales without pursuing public listings. This approach has allowed employees and current investors to capitalize on the escalating value of their equity in these enterprises. It is important to note that in a sale of existing shares, no fresh capital is infused into the company.
OpenAI, having secured a primary funding infusion of $10 billion from Microsoft (NASDAQ: MSFT) earlier this year, has deployed these resources to advance its product development initiatives and bolster AI model training.
In recent months, numerous startups, including Inflection and Anthropic, have garnered substantial funding from distinguished investors, further underscoring the continued allure of AI-focused enterprises.
