{"id":28063,"date":"2023-01-05T23:57:14","date_gmt":"2023-01-05T23:57:14","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2023\/01\/05\/openai-the-startup-behind-chatgpt-discusses-tender-offer-that-could-value-it-at-29b\/"},"modified":"2023-01-05T23:57:14","modified_gmt":"2023-01-05T23:57:14","slug":"openai-the-startup-behind-chatgpt-discusses-tender-offer-that-could-value-it-at-29b","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2023\/01\/05\/openai-the-startup-behind-chatgpt-discusses-tender-offer-that-could-value-it-at-29b\/","title":{"rendered":"OpenAI, the startup behind ChatGPT, discusses tender offer that could value it at $29B"},"content":{"rendered":"

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OpenAI Inc.<\/a>, the startup behind the artificial intelligence-powered chatbot tool ChatGPT, is the subject of a tender offer from investors that could see its value soar to as much as $29 billion.<\/p>\n

A report from the Wall Street Journal<\/a> today claims that venture capitalist firms Founders Fund and Thrive Capital are in talks to invest in the red-hot startup in a deal that would see them purchase shares from existing OpenAI shareholders such as its employees. If the deal goes ahead, it would more than double OpenAI\u2019s previous valuation of $14 billion, set following its most recent tender offer in 2021.<\/p>\n

OpenAI captured the public\u2019s imagination recently with the launch of its viral chatbot tool ChatGPT<\/a> late last year. The chatbot is able to give intelligent, human-like responses to almost any kind of question, even complex ones such as \u201cdescribe a debate between two students about the value of education\u201d. Within a few days of its launch on Nov. 30, ChatGPT had racked up more than a million users, according to a tweet by its chief executive officer Sam Altman (pictured). Industry watchers have claimed that ChatGPT is such a major technological breakthrough that it could one day even rival Google LLC<\/a> as an alternative to Google Search, though Altman has previously admitted that it still suffers from glitches.<\/p>\n

OpenAI is also behind DALL-E, an AI-powered image generation tool that has demonstrated a human-level artistic flare<\/a>, creating some incredible pictures based on people\u2019s text-based descriptions.<\/p>\n

The startup was founded as a nonprofit back in 2015, with a mission of pursuing AI research for the benefit of humanity. In order to raise more capital to pay for the computing power needed to train its algorithms, OpenAI established a for-profit arm in 2019. Its original backers included Tesla Inc.\u2019s CEO Elon Musk, LinkedIn. Corp. co-founder Reid Hoffman, as well as Altman, who was formerly the president of prominent venture capital firm Y Combinator. However, most of the funds raised by OpenAI since then have come from Microsoft Corp.<\/a>, a company it has become closely associated with.<\/p>\n

OpenAI says that its ultimate goal is for its technology to achieve what researchers call \u201cartificial general intelligence\u201d, which is a state where AI can fully mirror the intelligence, creativeness and thoughtfulness of humans. Altman, in a December interview with the Journal, said that OpenAI\u2019s tools can potentially have a transformative effect on society similar to that of the smartphone. He believes AI can be used to come up with solutions to some of the largest challenges facing the scientific community today.<\/p>\n

In the meantime though, OpenAI clearly needs more money if it wants to get there. The company claims to be generating \u201ctens of millions of dollars\u201d in revenue and believes it is on track to hit $1 billion in annual revenue by 2024, Reuters reported<\/a> previously.<\/p>\n

Altman has previously stated that OpenAI doesn\u2019t have any plans to go public anytime soon, nor is it interested in being acquired. As such, investors are only able to cash out of the company through secondary share sales. However, OpenAI\u2019s investors have an incentive not to sell. According to the Journal, investors in the firm are limited to profits of around 20-times their original investment, though they can earn bigger returns the longer they wait before selling up their shares.<\/p>\n

Photo: Techcrunch\/Flickr<\/a><\/h5>\n
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