TLDR:
OpenAI completes a deal valuing the company at $80 billion, nearly tripling its valuation in less than 10 months. The deal allows employees to cash out their shares and is seen as a vote of confidence after a year of controversy.
Article Summary:
OpenAI has completed a deal that values the San Francisco artificial intelligence company at $80 billion or more, nearly tripling its valuation in less than 10 months. The deal, led by venture firm Thrive Capital, allows employees to sell existing shares in a tender offer, providing them with the opportunity to cash out their shares in the company. This differs from a traditional funding round that would raise money for business operations.
OpenAI is now one of the world’s most valuable tech start-ups, behind ByteDance and SpaceX, according to data tracker CB Insights. The company specializes in generative A.I. technology that can generate text, sounds, and images on its own, capturing the public’s imagination with the release of the online chatbot ChatGPT.
The deal comes at a critical time for OpenAI, providing a vote of confidence after a year of controversy that included the firing and subsequent reinstatement of its chief executive, Sam Altman. The company has hired the law firm WilmerHale to review the board’s actions and Mr. Altman’s leadership, with the report expected to be finished early this year.
This deal is part of a larger funding boom in Silicon Valley, where a handful of companies specializing in generative A.I. technology have been attracting significant investments. Overall, the deal signifies a positive step forward for OpenAI after a tumultuous year.
