BackChatGPT-owner OpenAI skyrockets in valuation amid AI gold rush, to be valued at $90 billion after sale of existing share
OpenAI is reportedly in talks to sell shares, potentially reaching a valuation of $80 to $90 billion, amid the AI investment boom.
PremiumSan Francisco-based tech firm OpenAI is reportedly in talks to sell existing shares in a deal that could catapult its valuation to a staggering $80 to $90 billion, according to unnamed sources cited by both Reuters and the Wall Street Journal. This massive valuation increase comes amidst an AI investment boom, positioning OpenAI as one of the world's most valuable privately-held companies.
The surge in valuation would be nearly triple compared to what the firm was worth after a share sale earlier in 2023, according to the Wall Street Journal. The proposed sale would not raise new capital but would enable existing shareholders and insiders to offload their stakes.
Also Read: ChatGPT can now talk to you. Here's how to use the newly released features by OpenAI
Interestingly, this news comes as generative AI technologies like ChatGPT, developed by OpenAI, are increasingly capturing public attention. ChatGPT has been heralded as a groundbreaking achievement in the AI sphere, given its capacity for generating human-like text based on user prompts.
The platform's popularity has contributed significantly to a climate of enthusiasm around AI ventures, drawing hefty investments into the sector. Startups such as Inflection and Anthropic have also secured considerable funding in recent months.
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Adding fuel to the AI hype, OpenAI announced this week the addition of voice and image capabilities to ChatGPT. Initially rolling out to ChatGPT Plus and Enterprise users, these features are expected to be integrated into mobile platforms like Apple's iOS and Google's Android in the coming weeks.
For example, users could photograph the contents of a fridge for meal ideas, or snap a photo of their child’s maths homework for problem-solving assistance.
Also Read: SoftBank seeking to invest or partner with OpenAI
Microsoft has already invested billions into OpenAI, further intensifying the AI rivalry among global tech giants. Companies like Google, Meta, and Microsoft, as per AFP, are keen to exploit generative AI's potential, all while navigating the potential risks, such as the technology's misuse for disseminating misinformation or perpetrating cybercrime.
(With agency inputs)
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