OpenAI, the company known for developing ChatGPT, is reportedly in discussions to sell shares owned by its employees at a whopping valuation of US$86 billion. Sources familiar with the matter have revealed that the startup is in talks with prospective investors for this significant transaction, also known as a tender offer as reported by The Business Times.
Inside the negotiation process
While these discussions are in progress, nothing has been set in stone. The sources, who wished to remain anonymous due to the subject’s sensitive nature, stated that terms and allocations are not yet finalised. This means the valuation and other details could still change before closing the deal.
The potential leap in valuation
If OpenAI secures this valuation, it will soar past other big names like Stripe and Chinese online shopping platform Shein, positioning itself as one of the most valuable private companies globally. Only a few, such as Elon Musk’s SpaceX and ByteDance, the parent company of TikTok, would outrank it. Microsoft, a significant shareholder with a 49% stake, would likely see a boost in its investment value. CEO Sam Altman and President Greg Brockman currently spearhead the company.
A bright financial outlook for OpenAI
OpenAI is doing quite well financially. According to a report by Bloomberg in August, the firm is on course to rake in US$1 billion in annual revenue. This is mainly due to businesses increasingly adopting its artificial intelligence technologies. Furthermore, a story by the Wall Street Journal last month indicated that OpenAI was discussing a potential share sale valued between US$80 billion and US$90 billion.
