According to a report from The Wall Street Journal, research study laboratory OpenAI, the developer of ChatGPT, is considering a tender deal that would value the business at around $29 billion.
The deal would include buying a defined number of shares from existing shareholders at a repaired rate and would roughly double OpenAI’s appraisal from a previous tender offer finished in 2021, when the business was valued at around $14 billion.
The deal is reportedly being worked out with equity capital companies Flourish Capital and Creators Fund. If it goes through it would make OpenAI one of the most valuable startups in the United States.
The substantial increase in the company’s worth is likely due in part to the extensive popularity of ChatGPT, which acquired over a million users within the very first 5 days of being offered to the public.
Given that OpenAI’s most popular item is provided for free, it might appear unexpected that the company is valued so highly.
OpenAI produces millions in revenue by selling its AI software to designers. OpenAI is presently supplying cloud services to Microsoft for tools that enable users to produce text, code, and imagery using easy directions.
Furthermore, as a research organization, OpenAI is funded through a mix of donations, sponsorships, and grants.
Some of the sources of funding for OpenAI consist of business like Microsoft and individual philanthropists such as Elon Musk and Sam Altman.
In 2019, Microsoft invested $1 billion in OpenAI, and the company has been talking about the possibility of making a much bigger financial investment in the AI company, possibly worth tens of billions of dollars.
With additional 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 online search engine.
See: Microsoft Bing With ChatGPT Reportedly Introducing In March
ChatGPT integration will allow Bing to provide complete sentences in response to browse questions instead of lists of links.
The upgraded search function is anticipated to be available by the end of March and can possibly provide Microsoft an advantage over Google.
The tender deal has actually not yet been finalized, and the terms might change. OpenAI decreased to comment on The Wall Street Journal’s report.