ChatGPT’s Appeal Improves OpenAI’s Worth To $29 Billion

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According to a report from The Wall Street Journal, research laboratory OpenAI, the developer of ChatGPT, is thinking about a tender deal that would value the company at around $29 billion.

The offer would include acquiring a specified variety of shares from existing shareholders at a repaired rate and would approximately double OpenAI’s evaluation from a previous tender deal completed in 2021, when the company was valued at around $14 billion.

The offer is apparently being negotiated with venture capital firms Thrive Capital and Creators Fund. If it goes through it would make OpenAI among the most valuable start-ups in the United States.

The significant boost in the company’s worth is likely due in part to the widespread appeal of ChatGPT, which got over a million users within the first five days of being made available to the public.

Considered that OpenAI’s most popular item is provided free of charge, it may seem surprising that the business is valued so extremely.

OpenAI generates millions in profits by offering its AI software to developers. OpenAI is presently supplying cloud services to Microsoft for tools that permit users to develop text, code, and imagery utilizing basic directions.

Furthermore, as a research company, OpenAI is moneyed through a mix of donations, sponsorships, and grants.

Some of the sources of financing for OpenAI include companies like Microsoft and individual benefactors such as Elon Musk and Sam Altman.

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

With additional financial investment, OpenAI can work on incorporating its AI technology with other Microsoft items.

This week, it was reported that Microsoft plans to integrate AI technology from OpenAI’s ChatGPT chatbot into its Bing online search engine.

See: Microsoft Bing With ChatGPT Reportedly Introducing In March

ChatGPT combination will permit Bing to offer complete sentences in response to search questions rather than lists of links.

The updated search function is anticipated to be available by the end of March and can possibly offer Microsoft an advantage over Google.

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