ChatGPT creator aiming for R1.5-trillion valuation in share sale — Report

OpenAI, the creator of ChatGPT, is talking to investors about a potential share sale that would value the startup at $80 billion to $90 billion (R1.53 trillion to R1.72 trillion), the Wall Street Journal reported.

Such a valuation would be almost three times what the artificial intelligence startup was valued at earlier this year, the Journal said, citing unidentified people familiar with the discussions.

The deal would allow employees to sell their existing shares instead of the company issuing new ones to raise fresh capital, according to the Journal.

OpenAI has begun pitching investors on the deal, the people said, though terms could still change.

A valuation of at least $80 billion would make OpenAI one of the most highly valued startups in the world.

Microsoft Corp. has invested $13 billion in OpenAI, which was co-founded by Sam Altman.

It is on track for $1 billion of annual revenue as businesses adopt the technology behind ChatGPT, Bloomberg has reported.

OpenAI is regarded as one of a handful of companies at the forefront of generative AI, which can create content from videos to poetry out of a few simple user commands.

Since the debut of ChatGPT in November, OpenAI has worked with companies from fledgling firms to major corporations to incorporate the technology in their businesses and products.

Now read: Amazon investing up to R75.3 billion in OpenAI rival

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ChatGPT creator aiming for R1.5-trillion valuation in share sale — Report