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  • Voltaire Staff

OpenAI valued at $80 billion after deal

OpenAI has finalized a deal that appraises its market value at $80 billion or higher, as disclosed by three individuals familiar with the transaction.

This valuation marks a near-tripling of OpenAI's worth in less than a span of 10 months.

The company is set to conduct a tender offer, led by venture firm Thrive Capital, through which existing shares will be sold, according to sources, reported the NYT.

The unique arrangement provides an opportunity for employees to liquidate their shares in the company, diverging from the conventional funding round aimed at generating capital for business operations.

The deal highlights Silicon Valley's ongoing trend of investing heavily in a select few companies specialising in generative AI — technology capable of autonomously generating text, sounds, and images. The surge in funding began early last year, spurred by OpenAI's ChatGPT online chatbot release, which captivated the public's interest.

The deal provides vital support for OpenAI amid a turbulent period. In November, CEO Sam Altman was fired by the board, cleaving the company into camps, followed by threats of resignation by employees.

Altman was later reinstated, but with several board members resigning.

Last year, the company struck a similar deal. Venture capital firms Thrive Capital, Sequoia Capital, Andreessen Horowitz, and K2 Global agreed to purchase OpenAI shares in a tender offer, pegging the company's value at approximately $29 billion.

Investors are showing strong interest in AI companies.

In January last year, Microsoft invested $10 billion in OpenAI, totaling its investment in the San Francisco startup to $13 billion. OpenAI has now become one of the world's most valuable tech startups, trailing behind ByteDance and SpaceX.







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