Proactive Investors - OpenAI is reportedly in discussions to sell shares held by current employees at a staggering valuation of US$86 billion.
Known for its creation of ChatGPT, the artificial intelligence (AI) company is engaged in talks, referred to as a tender offer, with potential investors, although the terms of the deal could still change.
Although final allocations haven't been confirmed and terms are subject to change, this valuation would catapult OpenAI into the league of some of the world's most valuable privately held firms, surpassing the likes of Stripe and Chinese online retailer Shein.
OpenAI, which 49% owned by Microsoft Corporation (NASDAQ:MSFT), is helmed by CEO Sam Altman and president Greg Brockman.
If the deal goes through, OpenAI would only trail behind prominent privately owned companies like Elon Musk’s SpaceX and TikTok's parent company ByteDance in terms of valuation.
As businesses increasingly adopt OpenAI's technology, the firm is anticipated to generate an impressive US$1 billion in annual revenue, as reported in August.
OpenAI's potential valuation range was previously estimated at US$80 billion to US$90 billion, according to reports last month.