ChatGPT creator OpenAI in talks for tender offer valuing company at US$29b: WSJ
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OPENAI, the artificial intelligence (AI) research lab behind chatbot ChatGPT, is in talks to sell existing shares in a tender offer that would value the company at about US$29 billion, the Wall Street Journal reported on Thursday (Jan 5), citing people familiar with the matter.
The report added that the deal is structured in a way in which venture capital firms Thrive Capital and Founders Fund will buy shares from existing shareholders such as employees.
The deal would attract investment of at least US$300 million in share sales, it added.
Billionaire and Tesla CEO Elon Musk founded the research organisation with investor Sam Altman.
Microsoft which invested US$1 billion in OpenAI in 2019, was working to launch a version of its search engine Bing using the AI behind the now viral ChatGPT, the Information reported on Tuesday.
OpenAI’s chatbot is a software application designed to mimic human-like conversation based on user prompts and can respond to a large range of questions while imitating human speaking styles.
The firm expects business to surge as it pitched to investors saying the organisation expects US$200 million in revenue next year and US$1 billion by 2024, Reuters reported in December.
OpenAI declined to comment, while the VC firms did not immediately respond to Reuters request for comment. REUTERS
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