ChatGPT creator OpenAI in talks for tender offer valuing company at $29 billion: report

By Daisy On Jan 6, 2023

OpenAI, the artificial intelligence research lab behind chatbot ChatGPT, is in talks to sell existing shares in a tender offer that would value the company at about $29 billion, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

The report added that the deal is structured in a way in which venture capital firms Thrive Capital and Founders Fund will buy shares from existing shareholders such as employees.

The deal would attract investment of at least $300 million in share sales, it added.

Billionaire and Tesla Inc CEO Elon Musk founded the research organization with investor Sam Altman.

Microsoft Corp which invested $1 billion in OpenAI in 2019, was working to launch a version of its search engine Bing using the AI behind the now viral ChatGPT, the Information reported on Tuesday..

OpenAI’s chatbot is a software application designed to mimic human-like conversation based on user prompts and can respond to a large range of questions while imitating human speaking styles.

Discover the stories of your interest

The firm expects business to surge as it pitched to investors saying the organization expects $200 million in revenue next year and $1 billion by 2024, Reuters reported in December.
OpenAI and Thrive Capital declined to comment, while Founders Fund did not immediately respond to a Reuters request for comment.

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.

For all the latest Technology News Click Here

Read original article here

Denial of responsibility! TechAI is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.