OpenAI, a California-based start-up, has recently struck a deal with investors that has reportedly valued the company at a staggering $80 billion. This news comes after a tumultuous year for OpenAI, the creator of ChatGPT. Although not officially confirmed by OpenAI yet, this deal marks a significant increase in the company’s value, almost tripling in less than 10 months.
The reported deal involves the sale of existing shares to investors led by Thrive Capital, allowing executives and employees to sell shares at a highly attractive price. This comes just three months after OpenAI faced a major crisis when company co-founder and CEO, Sam Altman, was terminated and then reinstated shortly after. This roller-coaster series of events did not seem to deter investors, as OpenAI continued to push boundaries in the field of generative artificial intelligence.
OpenAI made a significant impact on the artificial intelligence landscape with the launch of its ChatGPT program in late 2022. The success of this program generated immense interest in the cutting-edge technology, capable of producing text, sounds, and images on demand. This prompted existing investor Microsoft to further invest in OpenAI, pouring in a substantial $13 billion over the past few years.
The world of artificial intelligence is fiercely competitive, with tech giants like Microsoft, Google, and Amazon vying to develop and deploy new tools using AI’s generative capabilities. This intense competition led to the US Federal Trade Commission launching an investigation into the significant investments made by these tech giants in specialized start-ups like OpenAI.
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Founded as a non-profit in 2015, OpenAI faced a major crisis last November when CEO Sam Altman was abruptly fired by the board. This move was met with backlash from both executives and employees, leading to Altman’s swift rehiring and the resignation of several board members. Despite these internal struggles, OpenAI continued to innovate and recently released a new tool named “Sora,” capable of creating realistic videos on demand.
It is worth noting that OpenAI had previously reached a valuation of $29 billion in a similar deal with venture-capital firms, including Thrive Capital, Sequoia Capital, and Andreessen Horowitz, early last year. This exponential growth in valuation underscores the rapid ascent of OpenAI in the realm of generative artificial intelligence.
OpenAI’s latest $80 billion valuation highlights the company’s continued success and innovation in the field of AI. Despite facing internal challenges, OpenAI remains at the forefront of technological advancement, pushing boundaries and reshaping the future of artificial intelligence.
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