OpenAI reportedly seeks funding at an estimated value of $80 billion to $90 billion
September 26 2023
OpenAI, an artificial intelligence company partially owned by Microsoft, is reportedly in talks to sell shares which could raise the firm’s value to between $80 billion and $90 billion, from its current $29 billion valuation. Earlier this year, the company raised over $300 million in funding and announced major investment from Microsoft. OpenAI’s successful generative AI assistant, ChatGPT, is expected to become more interactive, enabling voice conversation capabilities. The company anticipates attaining $1 billion in revenue by 2023, and according to reports, will allow employees to sell their existing shares instead of issuing new ones.
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What does it mean?
- OpenAI: An artificial intelligence research and deployment company which is partially owned by tech giant Microsoft.
- Shares: Units of ownership interest in a corporation or financial asset. When someone buys shares in a company, they become part owners of that company.
- Valuation: The process of determining the current worth of an asset or a company. In this context, it refers to how much OpenAI is estimated to be worth.
- Funding: Money provided by an organization or government for a specific purpose. In this context, it refers to money OpenAI raised to support their business activities.
- Investment: Money or capital spent with the expectation of future benefits. In this context, it refers to financial support provided by Microsoft to OpenAI.
- Generative AI assistant: A type of artificial intelligence model that can simulate human conversation by generating responses to user inputs.
- ChatGPT: A language model and AI assistant developed by OpenAI. It's typically used to generate written content and can simulate human-like conversation.
- Revenue: The total money a business receives from its activities, in this case, from selling its products or services.
- Issuing new shares: The process of making new stocks available in the stock market in order to raise capital.