OpenAI Surges to $80 Billion Valuation in Recent Deal

Feb 17, 2024

Microsoft-backed OpenAI has finalized a deal valuing the artificial intelligence company at $80 billion or more. In this arrangement, existing shares are to be sold in a tender offer led by venture firm Thrive Capital, allowing employees to cash out their shares rather than pursuing a traditional funding round. OpenAI had previously engaged in a similar deal early last year, with venture capital firms Thrive Capital, Sequoia Capital, Andreessen Horowitz, and K2 Global purchasing shares in a tender offer, valuing the company at approximately $29 billion.

This deal comes amid increasing interest in AI following the launch of OpenAI’s ChatGPT in late 2022, spurring companies to explore ways to leverage AI technology. Additionally, OpenAI CEO Sam Altman has reportedly been in discussions to raise funds for a chip venture, aiming to enhance the global capacity for chip manufacturing to support the development of new AI-related tools.