ChatGPT’s Popularity Enhances OpenAI’s Worth 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 acquiring a specified number of shares from existing shareholders at a repaired rate and would roughly double OpenAI’s assessment from a previous tender deal completed in 2021, when the business was valued at around $14 billion.

The offer is apparently being negotiated with equity capital firms Thrive Capital and Founders Fund. If it goes through it would make OpenAI among the most important startups in the United States.

The considerable increase in the company’s worth is likely due in part to the prevalent popularity of ChatGPT, which gained over a million users within the first five days of being made available to the general public.

Given that OpenAI’s most popular product is offered totally free, it might seem surprising that the company is valued so highly.

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

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

Some 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 business has actually been talking about the possibility of making a much larger financial investment in the AI business, possibly worth 10s of billions of dollars.

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

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

See: Microsoft Bing With ChatGPT Reportedly Launching In March

ChatGPT integration will allow Bing to provide total sentences in reaction to browse questions rather than lists of links.

The upgraded search function is anticipated to be offered 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 could change. OpenAI decreased to talk about The Wall Street Journal’s report.