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OpenAI, the innovator behind ChatGPT, is reportedly in active discussions to sell shares owned by existing employees at a striking valuation of $86 billion. This information was disclosed by individuals familiar with the deal, who requested anonymity due to the confidential nature of these discussions.
This transaction, known as a tender offer, is still negotiating between the artificial intelligence startup and potential investors. While it has not yet been finalized, and allocations and terms may still be subject to change, the transaction could significantly elevate OpenAI's position in the market.
OpenAI, which has Microsoft Corp owning a substantial 49% stake, is steered by CEO Sam Altman and President Greg Brockman. Should the $86 billion valuation come to fruition, OpenAI could leapfrog other major firms such as Stripe and Chinese online retailer Shein. This would place them amongst the world's most valuable closely held companies alongside Elon Musk's SpaceX and TikTok parent ByteDance.
However, a representative from OpenAI, which is based in San Francisco, declined to comment on the current reported negotiations. The company, as reported by Bloomberg in August, is on course to deliver $1 billion in annual revenue as more businesses adapt and incorporate its technology. This comes on the heels of a Wall Street Journal report that OpenAI was considering a share sale, aiming at a valuation between $80 billion and $90 billion, indicating a steady increase in the company's projected value.