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OpenAI valued at $80 billion in recent deal: Expanding AI frontiers


OpenAI valued at $80 billion in recent deal

According to the New York Times, Microsoft-backed OpenAI has recently finalized a significant deal, estimated to value the AI company at $80 billion or potentially higher.


This valuation, sourced from individuals familiar with the transaction, marks a substantial milestone for OpenAI and underscores the growing significance of artificial intelligence in the technology landscape.


The deal involves the sale of existing shares in what is termed a "tender offer," orchestrated primarily by venture firm Thrive Capital. This approach allows employees of OpenAI to monetize their shares in the company, deviating from the conventional route of raising capital through traditional funding rounds.



By enabling employees to cash out their shares, the deal provides them with a tangible means of realizing the value accrued from their involvement with OpenAI.


Notably, OpenAI has yet to offer an official comment on the reported transaction, as they did not respond immediately to a request for comment from Reuters.


However, this move follows a pattern established by the company in a similar deal concluded earlier last year. During that transaction, venture capital heavyweights including Thrive Capital, Sequoia Capital, Andreessen Horowitz, and K2 Global participated in a tender offer to purchase OpenAI shares, valuing the company at approximately $29 billion. This earlier deal laid the groundwork for OpenAI's continued growth trajectory and expansion within the AI landscape.



The emergence of OpenAI's ChatGPT platform in late 2022 has catalyzed significant excitement and interest in the potential applications of AI technology. This development has spurred companies across various industries to explore innovative ways to leverage AI capabilities to enhance their operations, products, and services.


The widespread attention garnered by ChatGPT underscores the transformative impact of AI and its potential to revolutionize diverse sectors, ranging from customer service to content creation.


In addition to its core AI initiatives, OpenAI CEO Sam Altman has reportedly been engaged in discussions regarding a separate venture focused on chip development.



This venture aims to address the growing demand for advanced semiconductor technologies essential for powering next-generation AI applications.


By bolstering the world's chip manufacturing capacity, Altman seeks to facilitate the creation of cutting-edge AI tools and infrastructure, further solidifying OpenAI's position at the forefront of AI innovation.


17.02.2024



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