OpenAI, the artificial intelligence startup responsible for innovations like ChatGPT, is reportedly in advanced negotiations to sell existing employees’ shares at an astounding $86 billion valuation.
Multiple undisclosed sources familiar with the matter have divulged this highly confidential information.
OpenAI is exploring what is known as a tender offer, discussing the transaction with potential investors who have expressed a keen interest.
While specific details and allocations are yet to be finalized, some insiders suggest that the terms might undergo further changes as discussions continue.
With Microsoft Corp. holding a 49% stake in OpenAI, the company is under the leadership of CEO Sam Altman and President Greg Brockman.
At this remarkable $86 billion valuation, OpenAI is poised to leapfrog its way into the upper echelons of privately held companies globally, competing for a spot among giants like Elon Musk’s SpaceX and TikTok’s parent company, ByteDance, effectively overtaking Stripe and Shein.
OpenAI has remained tight-lipped about this monumental development, with a representative declining to comment on the matter.
The company’s anticipated $1 billion in annual revenue, driven by widespread adoption of its groundbreaking AI technology, was previously reported by Bloomberg in August.
The Wall Street Journal’s earlier report hinted at a potential valuation ranging between $80 billion and $90 billion, making OpenAI’s current valuation yet another testament to the company’s rapid rise in the world of artificial intelligence and its substantial impact on the tech industry.
This unprecedented employee share sell-off signifies a pivotal moment in the company’s history, leaving industry insiders and observers eagerly awaiting further developments.