The New York Times reported on Friday that Microsoft-backed OpenAI had completed a deal worth $80 billion or more, citing people familiar with the matter. According to the report, now the company will have plan to sell all existing shares in a "tender offer" led by venture firm 'Thrive Capital'. Employees will be able to cash out their company shares under the agreement, rather than participating in a traditional funding round to raise funds for the company, according to the report.
According to the report, venture capital firms Thrive Capital, Sequoia Capital, Andreessen Horowitz, and K2 Global have agreed to buy OpenAI shares in a tender offer, valuing the company at approximately $29 billion. The launch of OpenAI's ChatGPT in late 2022 has sparked interest in AI, prompting businesses to investigate ways to harness the technology's potential. Sam Altman, the CEO of OpenAI, is reportedly in talks to raise money for a chip venture as part of his efforts to expand chip manufacturing globally to support the development of new AI-related tools.
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According to the New York Times, OpenAI, led by Sam Altman, will sell its shares in a tender offer led by venture firm Thrive Capital. This deal will allow employees to cash out their employer-owned shares under this arrangement, which differs from a typical funding round for business operations. These days, OpenAI is among the most valuable tech startups in the world, second only to Elon Musk's SpaceX and ByteDance, the parent company of TikTok in China.
In a similar deal early last year, the Altman-led company was valued at $29 billion. Thrive Capital, along with venture firms Sequoia Capital, Andreessen Horowitz, and K2 Global, agreed to buy OpenAI shares in a tender offer, valuing the AI startup at around $29 billion.
(Inputs from agencies)
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