OpenAI, the creator of popular AI software like ChatGPT and DALL-E, has received a valuation of $29 billion as part of talks to sell private shares in a tender offer, according to the Wall Street Journal.
Citing people familiar with the negotiations, WSJ claimed that OpenAI is attempting to raise at least $300 million from venture capital firms like Thrive Capital and Founders Funds. Microsoft is also in talks to invest more in the startup after investing $1 billion in 2019 at a valuation of $14 billion.
Based in San Francisco, OpenAI has received viral attention through its advanced chatbot that can write poetry and solve complex equations, along with its AI image generator that can create fantastical pictures based on text prompts.
The valuation of the company is massive, compared with its revenue of tens of millions of dollars per year. However, speculation abounds on its use cases, especially for ChatGPT, that could upend whole industries and lead to massive productivity gains.
The deal is still in negotiations and nothing has yet been agreed upon.
