The uprising of ChatGPT

Posted by

ChatGPT creator OpenAI is reportedly in talks for a tender offer that would value the artificial intelligence research lab at $29 billion. That is roughly double OpenAI’s valuation from a previous tender offer completed in 2021. 

The offer would make OpenAI one of the most valuable U.S. startups in recent history. Venture capital firms Thrive Capital and Founders Fund are in talks to buy shares with the tender offer totaling at least $300 million. The deal is structured as a tender offer with the investors buying shares from existing shareholders, including employees.

OpenAI has generated tens of millions of dollars in revenue, in part from selling its AI software to developers. However there are doubts the  company can generate significant revenue from its artificial intelligence technology.

OpenAI is led by technology investor Sam Altman and has a goal of pursuing artificial intelligence research for the benefit of humanity. The ChatGPT is a chatbot where users can get intelligent responses from difficult questions, and it has been used to create college student papers and reports.

Among earlier investors in OpenAI are Microsoft, which invested $1 billion in OpenAI in 2019, Tesla’s Elon Musk, LinkedIn co-founder Reid Hoffman, Khosla Ventures, and hedge fund Tiger Global Management.