ChatGPT Maker OpenAI in Discussions to Sell Shares in Tender Offer Valuing Firm at $29 Billion: Report

OpenAI is said to have pitched to investors that it expects $1 billion (roughly Rs. 8,270 crore) in revenue by 2024.

By Reuters | Updated: 6 January 2023 11:32 IST

ChatGPT Maker OpenAI in Discussions to Sell Shares in Tender Offer Valuing Firm at $29 Billion: Report

Photo Credit: Pixabay

OpenAI was founded in 2015 by Sam Altman and Elon Musk

Highlights

Thrive Capital, Founders Fund to buy share from existing shareholders
The deal is said to attract at least $300 million in share sales
OpenAI, the creator of ChaGPT, expects business to surge

OpenAI, the artificial intelligence research lab behind chatbot ChatGPT, is in talks to sell existing shares in a tender offer that would value the company at about $29 billion (roughly Rs. 2,39,700 crore), the Wall Street Journal reported on Thursday, citing people familiar with the matter.

The report added that the deal is structured in a way in which venture capital firms Thrive Capital and Founders Fund will buy shares from existing shareholders such as employees.

The deal would attract investment of at least $300 million (roughly Rs. 2,480 crore) in share sales, it added.

Here’s How Microsoft Could Be Using ChatGPT AI to Compete With Google

Billionaire and Tesla CEO Elon Musk founded the research organisation with investor Sam Altman.

Microsoft which invested $1 billion (roughly Rs. 8,260 crore) in OpenAI in 2019, was working to launch a version of its search engine Bing using the AI behind the now viral ChatGPT, the Information reported on Tuesday.

OpenAI's chatbot is a software application designed to mimic human-like conversation based on user prompts and can respond to a large range of questions while imitating human speaking styles.

How ChatGPT Can Fool Humans, Even When It's Wrong

The firm expects business to surge as it pitched to investors saying the organisation expects $200 million (roughly Rs. 1,650 crore) in revenue next year and $1 billion by 2024, Reuters reported in December. Three sources briefed on OpenAI's recent pitch to investors said the organisation expects $200 million in revenue next year and $1 billion by 2024.

The forecast, first reported by Reuters, represents how some in Silicon Valley are betting the underlying technology will go far beyond splashy and sometimes flawed public demos.

Microsoft, providing OpenAI capital and computing power for its software, is a beneficiary. Asked about ChatGPT and whether Microsoft viewed such technology as experimental or strategic, its President Brad Smith told Reuters that AI has progressed faster than many predicted.

ChatGPT Could Soon Be the Better Way to Google

OpenAI and Thrive Capital declined to comment, while Founders Fund did not immediately respond to a Reuters request for comment.

Where did Realme go wrong with the 10 Pro+ 5G? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.