ChatGPT’s Popularity Improves OpenAI’s Value To $29 Billion

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According to a report from The Wall Street Journal, research study laboratory OpenAI, the designer of ChatGPT, is thinking about a tender offer that would value the company at around $29 billion.

The offer would involve purchasing a specified variety of shares from existing investors at a fixed price and would roughly double OpenAI’s assessment from a previous tender deal completed in 2021, when the business was valued at around $14 billion.

The offer is supposedly being worked out with equity capital companies Grow Capital and Creators Fund. If it goes through it would make OpenAI among the most important startups in the United States.

The considerable boost in the business’s value is likely due in part to the extensive appeal of ChatGPT, which got over a million users within the first 5 days of being provided to the general public.

Given that OpenAI’s most popular item is used for free, it may seem unexpected that the company is valued so highly.

OpenAI creates millions in revenue by offering its AI software application to developers. OpenAI is currently providing cloud services to Microsoft for tools that permit users to produce text, code, and images using simple directions.

In addition, as a research company, OpenAI is funded through a mix of donations, sponsorships, and grants.

A few of the sources of funding for OpenAI consist of companies like Microsoft and private benefactors such as Elon Musk and Sam Altman.

In 2019, Microsoft invested $1 billion in OpenAI, and the business has been discussing the possibility of making a much larger financial investment in the AI service, potentially worth 10s of billions of dollars.

With further investment, OpenAI can work on incorporating its AI technology with other Microsoft products.

Today, it was reported that Microsoft prepares to integrate AI technology from OpenAI’s ChatGPT chatbot into its Bing search engine.

See: Microsoft Bing With ChatGPT Reportedly Introducing In March

ChatGPT combination will permit Bing to offer complete sentences in action to search queries instead of lists of links.

The upgraded search function is anticipated to be available by the end of March and can possibly provide Microsoft a benefit over Google.

The tender offer has not yet been settled, and the terms might change. OpenAI declined to comment on The Wall Street Journal’s report.