ChatGPT maker OpenAI is in talks to sell employee shares at $86bn valuation, putting the closely held company in the league of SpaceX and Tiktok’s ByteDance
Oct 19, 2023 - fortune.com
OpenAI, the artificial intelligence startup behind ChatGPT, is reportedly in discussions to sell existing employees' shares at an $86 billion valuation. The transaction, known as a tender offer, is still under negotiation with potential investors and the terms could still change. If the deal goes through at this valuation, OpenAI would become one of the world's most valuable privately held companies, surpassing Stripe and Chinese online retailer Shein.
The company, which is 49% owned by Microsoft Corp., is expected to generate $1 billion in annual revenue as businesses adopt its technology. This news follows a report last month that OpenAI was considering a share sale that would value the startup between $80 billion and $90 billion.
Key takeaways:
OpenAI is reportedly in discussions to sell existing employees' shares at a valuation of $86 billion.
The AI startup, which is 49% owned by Microsoft Corp., is led by CEO Sam Altman and President Greg Brockman.
At this valuation, OpenAI would surpass Stripe and Chinese online retailer Shein to become one of the world's most valuable privately held companies.
The company is projected to generate $1 billion in annual revenue as businesses adopt its technology.
