OpenAI Nears $29 Billion Valuation in New Share Sale Talks
The maker of ChatGPT is in discussions for a tender offer that would double its valuation to $29 billion despite minimal revenue. Venture capital firms Thrive Capital and Founders Fund lead the potential $300 million deal.
OpenAI is in talks to sell existing shares in a tender offer that doubles the artificial intelligence startup's valuation to $29 billion. Venture capital firms Thrive Capital and Founders Fund are negotiating to lead the deal, which involves purchasing at least $300 million worth of shares from current OpenAI employees.
This potential deal makes OpenAI one of the most valuable US startups on the private market even though the company generates minimal revenue. The remarkable valuation stems largely from the massive popularity of ChatGPT, a viral chatbot capable of writing essays and cover letters that poses a potential threat to traditional search engines.
The investment stands out in a chilly venture capital environment where investors generally pull back from funding new startups. No official agreement is reached yet and the financial terms remain subject to change, but a successful transaction firmly cements OpenAI as a dominant force in the tech industry alongside its other popular creation, the Dall-E 2 image generator.