ChatGPT’s Popularity Improves OpenAI’s Worth 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 deal that would value the company at around $29 billion.

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

The offer is reportedly being worked out with equity capital firms Thrive Capital and Creators Fund. If it goes through it would make OpenAI among the most important start-ups in the United States.

The significant increase in the company’s worth is likely due in part to the extensive popularity of ChatGPT, which acquired over a million users within the first five days of being offered to the public.

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

OpenAI creates millions in revenue by selling its AI software application to developers. OpenAI is currently supplying cloud services to Microsoft for tools that enable users to develop text, code, and images utilizing easy directions.

Furthermore, as a research study organization, OpenAI is moneyed through a combination of donations, sponsorships, and grants.

Some of the sources of financing for OpenAI include companies like Microsoft and individual philanthropists such as Elon Musk and Sam Altman.

In 2019, Microsoft invested $1 billion in OpenAI, and the company has been discussing the possibility of making a much larger investment in the AI organization, potentially worth tens of billions of dollars.

With additional financial investment, OpenAI can deal with integrating its AI innovation with other Microsoft items.

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

See: Microsoft Bing With ChatGPT Reportedly Launching In March

ChatGPT integration will enable Bing to provide total sentences in reaction to search questions instead of lists of links.

The upgraded search function is anticipated to be offered by the end of March and can potentially provide Microsoft an advantage over Google.

The tender deal has not yet been completed, and the terms could change. OpenAI declined to comment on The Wall Street Journal’s report.