According to a report from The Wall Street Journal, research study lab OpenAI, the developer of ChatGPT, is considering a tender deal that would value the business at around $29 billion.
The offer would include buying a defined variety of shares from existing shareholders at a fixed cost and would approximately double OpenAI’s valuation from a previous tender offer completed in 2021, when the business was valued at around $14 billion.
The deal is supposedly being negotiated with equity capital companies Grow Capital and Creators Fund. If it goes through it would make OpenAI one of the most important start-ups in the United States.
The substantial boost in the company’s value is likely due in part to the widespread appeal of ChatGPT, which got over a million users within the first five days of being provided to the general public.
Considered that OpenAI’s most popular item is used free of charge, it may seem unexpected that the business is valued so extremely.
OpenAI creates millions in profits by offering its AI software to designers. OpenAI is currently offering cloud services to Microsoft for tools that enable users to produce text, code, and images using simple guidelines.
In addition, as a research organization, OpenAI is funded through a mix of donations, sponsorships, and grants.
A few of the sources of financing for OpenAI consist of companies like Microsoft and individual philanthropists such as Elon Musk and Sam Altman.
In 2019, Microsoft invested $1 billion in OpenAI, and the business has been discussing the possibility of making a much bigger investment in the AI organization, potentially worth tens of billions of dollars.
With more investment, OpenAI can work on incorporating its AI technology with other Microsoft items.
Today, it was reported that Microsoft prepares to integrate AI innovation from OpenAI’s ChatGPT chatbot into its Bing search engine.
See: Microsoft Bing With ChatGPT Reportedly Introducing In March
ChatGPT integration will enable Bing to provide total sentences in response to browse inquiries rather than lists of links.
The updated search function is anticipated to be available by the end of March and can possibly give Microsoft an advantage over Google.
The tender offer has not yet been completed, and the terms might alter. OpenAI declined to talk about The Wall Street Journal’s report.