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

Posted by

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

The deal would include purchasing a defined number of shares from existing shareholders at a fixed price and would roughly double OpenAI’s appraisal from a previous tender offer completed in 2021, when the business was valued at around $14 billion.

The offer is supposedly being worked out with equity capital companies Grow Capital and Creators Fund. If it goes through it would make OpenAI one of the most important startups in the United States.

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

Given that OpenAI’s most popular product is provided totally free, it may seem unexpected that the company is valued so highly.

OpenAI creates millions in earnings by selling its AI software application to developers. OpenAI is presently providing cloud services to Microsoft for tools that permit users to develop text, code, and images using simple instructions.

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

A few of the sources of financing for OpenAI include business like Microsoft and private philanthropists such as Elon Musk and Sam Altman.

In 2019, Microsoft invested $1 billion in OpenAI, and the business has actually been talking about the possibility of making a much larger investment in the AI business, potentially worth tens of billions of dollars.

With more financial investment, OpenAI can work on integrating its AI technology with other Microsoft products.

Today, it was reported that Microsoft prepares to incorporate AI technology from OpenAI’s ChatGPT chatbot into its Bing search engine.

See: Microsoft Bing With ChatGPT Reportedly Introducing In March

ChatGPT combination will allow Bing to supply total sentences in action to search queries rather than lists of links.

The upgraded search function is anticipated to be offered by the end of March and can potentially provide Microsoft a benefit over Google.

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