Sun. Apr 14th, 2024

TLDR:

  • OpenAI completes a deal valuing the company at $80 billion, triple its previous valuation.
  • The deal allows employees to cash out their shares and is led by Thrive Capital.

OpenAI, a San Francisco-based artificial intelligence company, has recently completed a deal that values the company at $80 billion. This valuation is nearly three times more than what it was less than 10 months ago. The deal, led by venture firm Thrive Capital, allows employees to cash out their shares in the company rather than raising funds for business operations through a traditional funding round.

The funding boom in companies specializing in generative A.I., which can create text, sounds, and images independently, started after OpenAI released the online chatbot ChatGPT. The deal comes at a critical time for OpenAI, following turmoil with the firing and reinstatement of its CEO, Sam Altman. Investors, including Microsoft, have shown eagerness to pour money into A.I. companies like OpenAI.

In November, over 700 of the company’s 770 employees signed a petition for Altman’s reinstatement. OpenAI’s latest deal reflects the continued interest and investment in the A.I. sector, solidifying its position as one of the world’s most valuable tech start-ups behind ByteDance and SpaceX.