OpenAI, supported by tech giant Microsoft, has finalized a share sale that pegs the AI innovator’s worth at an impressive $80 billion. The unique arrangement, spearheaded by the venture capital company Thrive Capital, allows OpenAI personnel to monetize their equity holdings. This share sale is not intended to generate capital for the company but to provide liquidity for its employees’ shares.
Previous Funding Rounds and Investments
Previously, OpenAI engaged in a similar agreement where prestigious venture capital entities including Thrive Capital, Sequoia Capital, Andreessen Horowitz, and K2 Global acquired shares via a tender offer, which at the time assessed OpenAI’s value at about $29 billion. OpenAI has been on the radar with substantial funding activities, notably Microsoft’s substantial $10 billion infusion earlier in January 2023, amongst other investments in the preceding years.
New Developments and Strategic Moves
The AI sector experienced a surge of interest following the late 2022 debut of OpenAI’s ChatGPT. This has spurred companies to seek ways to harness AI technology, as evidenced by Microsoft’s integration of AI into its Bing search engine and ongoing innovation efforts. Recently, OpenAI has introduced Sora, a tool that crafts videos from textual instructions, and improved ChatGPT’s memory functions for more cohesive user interactions.
Negotiations led by OpenAI’s CEO Sam Altman to acquire a chip manufacturer or secure better access to the high-end AI chips essential for their tools are also underway. This deal marks a significant vote of confidence in the company, following a turbulent phase which saw Altman temporarily dismissed and then reinstated as CEO due to staff protest.
The deal’s impact extends to Worldcoin, the cryptocurrency initiative by Altman, which is anticipated to gain from OpenAI’s valuation boost. The recent uptick in Worldcoin’s value from $2.50 to $4.96 is believed to be influenced by these corporate developments.