OpenAI eyes $80-90bn valuation as investors bet on AI future
OpenAI, the Microsoft-backed artificial intelligence start-up, is reportedly in talks with investors to sell existing shares at a higher valuation than just a few months ago. The proposed deal could value the company from $29 billion to a staggering $80-$90 billion, making it one of the world's most valuable private companies. This meteoric rise in valuation is attributed to the success of ChatGPT, a chatbot that generates human-like responses based on user prompts.
Microsoft invested $10 billion in OpenAI earlier this year
The sale of existing shares would allow existing investors and employees to cash in on the rising value of their equity in OpenAI, without having to raise new capital. Earlier this year, the company raised $10 billion from Microsoft, which it uses for new product development and AI model training. In April, OpenAI made a $300 million share sale at a valuation of $30 billion, marking a significant increase in valuation with the proposed share sale.
ChatGPT's success has fueled enthusiasm for AI start-ups
OpenAI's conversational AI chatbot, ChatGPT, became immensely popular since its debut last year. The tool just got an update and it can now take images as well as voice commands, revolutionizing the way users interact with the chatbot. The success of ChatGPT has fueled enthusiasm for AI start-ups and attracted significant investments. OpenAI's proposed deal to sell existing shares at a much higher valuation showcases the growing interest and confidence in the potential of artificial intelligence technology.
