Technology

OpenAI Valued at $80 Billion in Microsoft-Backed Deal

February 17, 2024

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OpenAI, which is funded by Microsoft, has agreed to a contract worth $80 billion or more.

According to sources cited by the New York Times, Microsoft-backed OpenAI has completed a deal that values the artificial intelligence company at $80 billion or more.

Employees Offered Opportunity to Cash Out Shares

The report states that in this transaction, OpenAI opted for a tender offer, allowing employees to sell existing shares instead of pursuing a traditional funding round.

Last year, OpenAI entered a similar agreement with venture capital firms, including Thrive Capital, Sequoia Capital, Andreessen Horowitz, and K2 Global, which are valued at approximately $29 billion.

Impact of ChatGPT Launch:

The launch of OpenAI’s ChatGPT in late 2022 sparked significant interest in AI, prompting companies to explore its potential applications.

OpenAI CEO Sam Altman has reportedly been discussing securing funds for a chip venture to enhance the world’s chip-building capacity to support new AI-related tools.

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James Adam

James Adam, a noted business writer for CEO Times Magazine, specializes in insightful industry analysis and executive profiles. Known for his clear, concise style, James offers readers an expert perspective on global business trends and market dynamics.

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