According to a report from The Wall Street Journal, research study laboratory OpenAI, the designer of ChatGPT, is considering a tender deal that would value the business at around $29 billion.
The deal would include acquiring a defined variety of shares from existing shareholders at a fixed rate and would roughly double OpenAI’s assessment from a previous tender offer finished in 2021, when the company was valued at around $14 billion.
The deal is supposedly being negotiated with venture capital firms Flourish Capital and Founders Fund. If it goes through it would make OpenAI one of the most important startups in the United States.
The significant boost in the company’s value is likely due in part to the extensive popularity of ChatGPT, which got over a million users within the very first five days of being provided to the general public.
Given that OpenAI’s most popular item is used totally free, it may appear surprising that the company 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 permit users to develop text, code, and images utilizing basic instructions.
Additionally, as a research organization, OpenAI is funded through a mix of donations, sponsorships, and grants.
Some of the sources of funding for OpenAI include companies like Microsoft and private 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 larger investment in the AI business, potentially worth tens of billions of dollars.
With additional investment, OpenAI can deal with integrating its AI technology with other Microsoft products.
Today, it was reported that Microsoft prepares to include AI innovation from OpenAI’s ChatGPT chatbot into its Bing online search engine.
See: Microsoft Bing With ChatGPT Reportedly Launching In March
ChatGPT integration will allow Bing to offer complete sentences in reaction to browse questions rather than lists of links.
The upgraded search function is anticipated to be readily available by the end of March and can possibly provide Microsoft an advantage over Google.
The tender offer has actually not yet been finalized, and the terms might change. OpenAI declined to talk about The Wall Street Journal’s report.