ChatGPT’s Popularity Improves OpenAI’s Value To $29 Billion

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According to a report from The Wall Street Journal, research lab OpenAI, the designer of ChatGPT, is thinking about a tender offer that would value the business at around $29 billion.

The offer would include buying a specified number of shares from existing investors at a fixed price and would approximately double OpenAI’s evaluation from a previous tender offer finished in 2021, when the company was valued at around $14 billion.

The offer is apparently being worked out with venture capital companies Grow Capital and Founders Fund. If it goes through it would make OpenAI one of the most valuable startups in the United States.

The considerable increase in the business’s value is likely due in part to the widespread popularity of ChatGPT, which acquired over a million users within the first 5 days of being offered to the public.

Given that OpenAI’s most popular item is provided totally free, it may appear unexpected that the business is valued so highly.

OpenAI produces millions in earnings by selling its AI software to designers. OpenAI is currently offering cloud services to Microsoft for tools that allow users to develop text, code, and imagery utilizing basic guidelines.

Additionally, as a research organization, OpenAI is funded through a combination of donations, sponsorships, and grants.

A few of the sources of financing for OpenAI consist of companies like Microsoft and specific philanthropists such as Elon Musk and Sam Altman.

In 2019, Microsoft invested $1 billion in OpenAI, and the company has been going over the possibility of making a much bigger investment in the AI company, possibly worth 10s of billions of dollars.

With further investment, OpenAI can deal with integrating its AI technology with other Microsoft items.

This week, it was reported that Microsoft plans to incorporate 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 permit Bing to supply total sentences in action to browse inquiries instead of lists of links.

The updated search function is anticipated to be available by the end of March and can potentially offer Microsoft a benefit over Google.

The tender offer has not yet been settled, and the terms might alter. OpenAI declined to discuss The Wall Street Journal’s report.