Shares in OpenAI, the parent company of ChatGPT, could be sold soon, seeing the value of the organisation hit megastonks level.
OpenAI is the pioneering research lab that gave ChatGPT to the world. If you haven’t heard of ChatGPT by now, then get out from under your rock, person.
ChatGPT is an AI assistant that can do anything from writing essays to planning social media campaigns. It has been a trending topic on nearly every platform for weeks. So keep up, darling, this is important.
OpenAI is also known for its mind-bending platform Dall-E 2, an AI-based image generation platform.
Shares in OpenAI: Holy hell how much?
The sale of the shares will take place in a tender offer that could value the company at a stonking US$29 billion.
A tender offer works in this way: A company or person offers to buy shares in a company, within a certain timeframe, at a price usually above market price. Shareholders can choose to accept the offer or not. Tender offers are often used as a way for companies to acquire a large number of shares quickly. Or it can be used as a way for shareholders to sell their shares without having to wait for a buyer to be found on the open market.
The WSJ says that Venture capital firms Thrive Capital and Founders Fund are considering buying some shares in the deal, perhaps to the tune of $300 million.
If the deal goes through, it would make OpenAI one of the most valuable start-ups in the US. This is even though the company has not yet generated any significant revenue.
No revenue … yikes!
The revenue part is a bit worrying. In fact, it is costing OpenAI money to allow people to keep using its platforms for free. And it doesn’t seem to be cheap, according to co-founder Sam Altman.
OpenAI was founded in 2015 by a group of entrepreneurs, researchers, and philanthropists. The roll call originally included Elon Musk, but he resigned after he felt there was a conflict of interest with Tesla’s AI forays.
While these people seem loaded with brains and talent, they also appear to be scrambling for funds to keep going. Let’s keep following the Daddy of our fave platforms.