OpenAI reaches deal valuing startup at more than USD80B
Date
2/18/2024 8:05:49 AM
(MENAFN) In a significant development, OpenAI has reached an agreement with investors that could value the startup at over USD80 billion, marking a substantial leap in its valuation within a tumultuous year for the company, particularly notable for its creation of the "ChatGPT" program. While the agreement, as reported by the New York Times, awaits confirmation from OpenAI, it signifies a near tripling of the leading generative artificial intelligence company's value in less than ten months.
Under the terms of the agreement, based in San Francisco, OpenAI will have the opportunity to sell existing shares to investors, primarily led by Thrive Capital. Additionally, executives and employees will be afforded the chance to sell shares at an advantageous price point. This development comes on the heels of a challenging period for the company, which saw the temporary removal and subsequent reinstatement of its co-founder and CEO, Sam Altman, just three months prior.
Since its inception, OpenAI has been at the forefront of revolutionizing artificial intelligence, particularly with the launch of its groundbreaking "ChatGPT" program in late 2022. The program's immediate success generated significant interest in the advanced technology, capable of generating text, sounds, and images with unprecedented sophistication.
Microsoft, an initial investor in OpenAI, has notably increased its investments in the company, injecting approximately USD13 billion into its operations over recent years. This ongoing support underscores the confidence in OpenAI's potential and its continued impact on the AI landscape.
Adding to its string of innovations, OpenAI recently unveiled "Sora," a groundbreaking tool that enables the creation of realistic video clips up to one minute in length by simply inputting a text request. This advancement represents a significant milestone in the realm of artificial intelligence, further solidifying OpenAI's position as a pioneering force in the field.
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