In late November, OpenAI made headlines as CEO Sam Altman was ousted without a detailed explanation, causing concern among investors and employees. However, Altman was reinstated four days later, accompanied by the assurance of a new board structure.
Microsoft, a key investor, will assume a non-voting observer position on OpenAI’s board, as announced by Altman during the same period.
Now that the battle for the leadership position is over, OpenAI is once again in the early stages of discussions to secure a new funding round, with a potential valuation exceeding $100 billion, according to Bloomberg News. The terms, valuation, and timing of the funding round are yet to be finalized and may still undergo changes.
In addition to seeking funding for its core operations, OpenAI has engaged in talks regarding a new chip venture in collaboration with G42, a company based in Abu Dhabi. The report does not definitively establish a connection between the chip venture and the broader funding efforts, but it suggests that OpenAI has explored the possibility of raising funds ranging from $8 billion to $10 billion from G42.
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OpenAI is currently in the process of concluding a separate tender offer led by Thrive Capital, planned to be completed in early January. This initiative enables employees to sell shares at a valuation of $86 billion.
Microsoft has demonstrated its commitment to OpenAI by pledging an investment exceeding $10 billion. The partnership began in November 2022 when OpenAI gained widespread attention for the release of ChatGPT, a generative artificial intelligence-powered chatbot capable of producing human-like responses based on user input.
The introduction of ChatGPT has significantly contributed to OpenAI’s popularity and led to a substantial increase in the company’s valuation. Before now, OpenAI conducted a $300 million share sale, achieving a valuation of $30 billion.
While the funding details remain fluid, OpenAI’s strategic moves indicate a proactive approach to securing financial support and expanding its ventures, positioning the company for continued growth in the evolving landscape of artificial intelligence.
