OpenAI, a San Francisco-based artificial intelligence (AI) company, has reportedly signed a deal that has skyrocketed its valuation to $80 billion or more, marking a nearly threefold increase in less than 10 months.
The deal involves a tender offer led by Thrive Capital, allowing employees to sell their shares. This approach differs from a standard funding round aimed at raising capital for business operations. Last year, venture capital firms Thrive Capital, Sequoia Capital, Andreessen Horowitz, and K2 Global purchased OpenAI shares in a tender offer, valuing the company at approximately $29 billion.
OpenAI CEO Sam Altman has been in talks to raise funds for a chip venture and pitching partnerships with chip makers and energy providers. Altman aims to boost the world’s chip-building capacity to drive new AI-related tools, with OpenAI agreeing to be a significant customer of the new factories.
OpenAI faced turbulence when CEO Sam Altman was ousted by the board in November, leading to chaos and doubts about the company’s future. Employees threatened to resign, prompting Altman’s reinstatement. To address last year’s issues, OpenAI enlisted law firm WilmerHale to examine the board’s decisions and Altman’s leadership.
OpenAI gained attention with the launch of ChatGPT in late 2022, sparking interest in AI technology. The company unveiled its first-ever text-to-video model, Sora, on Feb. 15. While acknowledging that the model has room for improvement, Sora creates detailed videos from text prompts, continues existing videos, and generates scenes from still images.
The deal signing with Thrive Capital marks a significant milestone for OpenAI, providing crucial support amid challenges. With a soaring valuation and ambitious plans for AI innovation, OpenAI remains at the forefront of advancing AI technology.
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