The creator of ChatGPT is in talks with investors to reach a $29 billion Open AI business valuation.
Open AI and its ChatGPT chatbot fascinate the most curious, and this attraction gives some insight to its creator. Although the company has generated little revenue so far, it is said to be in talks with investors to sell shares as part of a takeover bid that would value the company at about $29 billion, according to the Wall Street Journal.
Thus, OpenAI hopes to achieve a turnover of $200 million in 2023. Specifically, the transaction is structured as a public tender offer, investors buying shares from shareholders such as employees.
No final agreement has been reached and conditions may change, but if the offer is accepted at this price, OpenAI will have accomplished a feat as investors have been more cautious in a tense and crisis tech sector.
Now a profitable business
OpenAI, led by Sam Altman and co-founder Elon Musk, was founded as a non-profit organization in 2015. In 2019, the company created a profitable division to make fundraising easier.
In an interview with the Wall Street Journal last December, Sam Altman said that OpenAI has no plans to “be acquired or go public, which means investors probably won’t be able to cash out just by reselling shares.”
Microsoft’s search engine, Bing, would also turn to ChatGPT to compete with Google. In 2019, Microsoft invested $1 billion in OpenAI and became its partner of choice.