OpenAI anticipates a valuation of $86 billion following an insider share transaction
OpenAI has raised more money than any other AI business so far in 2023.
According to a Bloomberg story from October 19, OpenAI, a firm focusing on artificial intelligence (AI), is going to undertake a tender offer enabling its present workers to sell their shares, which could increase the company’s worth to as much as $86 billion.
Tender offers provide current firm owners and workers with the opportunity to liquidate their shares for cash. SpaceX, helmed by Elon Musk, famously completed a similar offer in June, increasing the company’s worth to over $150 billion.
In only two years, the company’s value has increased by more than 100%, from $14 billion in 2021 to $30 billion today. If it is able to get the additional money, its value would increase to levels previously only seen by SpaceX and the parent company of TikTok, owned by Musk.
At the time of going to press, CryptoSlate had not heard back from OpenAI about our request for comment.
According to CryptoSlate, OpenAI has raised more money than any other AI business so far in 2018. Before raising an extra $300 million from investors like Sequoia Capital and Andreessen Horowitz, the artificial intelligence business had already secured a $10 billion investment from Microsoft earlier this year.
The breakthrough success of OpenAI’s AI-powered ChatGPT last year was a major factor in the company receiving a massive infusion of money. Using textual instructions, ChatGPT creates replies that demonstrate a level of skill and originality seldom seen in chatbots.
Since then, similar products from Anthropic (Claude) and Google (Bard) have entered the market in response to this success. However, OpenAI’s ChatGPT maintains its crown as the market leader by constantly innovating and releasing new products and services.
The increasing adoption of the company’s technology by enterprises means that it is also on course to reach yearly sales of $1 billion.
Meanwhile, despite OpenAI’s documented success, the company’s leadership allegedly has no intentions to go public anytime soon.