OpenAI Eyes $29 Billion Valuation Amid ChatGPT Surge
OpenAI is in talks with venture capital firms for a tender offer that doubles its valuation to $29 billion, fueled by the massive popularity of its ChatGPT chatbot.
OpenAI is reportedly exploring a tender offer that values the artificial intelligence company at $29 billion, according to sources cited by The Wall Street Journal. The deal includes approximately $300 million in share sales from existing stakeholders, though no final agreement is reached yet. This potential valuation marks a significant increase, doubling the $14 billion valuation the company achieved during a similar tender offer in 2021.
The surging interest in OpenAI comes as its ChatGPT chatbot dominates social media and mainstream conversations. Consumers flock to the AI tool because it provides humanlike conversation capabilities, answers follow-up questions, admits mistakes, and rejects inappropriate requests. This widespread exposure pushes artificial intelligence back into the headlines and drives intense investor curiosity.
Alongside the potential tender offer, Microsoft is in talks to increase its existing investment in the AI startup. Microsoft originally invested $1 billion into OpenAI in 2019 to become its exclusive cloud computing partner. As OpenAI pitches investors and anticipates reaching $1 billion in revenue by 2024, the company declines to publicly comment on the ongoing valuation discussions.