ChatGPT To Offer Shares that Values the Firm at $29 Billion

ChatGPT To Offer Shares that Values the Firm at $29 Billion.

ChatGPT, the popular new chatbot that utilizes artificial intelligence to generate essays and cover letters, has had a solid start to the year. The firm OpenAI, which created ChatGPT, is in discussions to sell current shares of the business in a tender offer that would value it at $29 billion, according to the Wall Street Journal (WSJ). 

Altman, Musk, and other Silicon Valley investors created OpenAI, a non-profit artificial intelligence research business, in 2015. Musk resigned from the board of directors in 2018 suggesting a conflict of interest between OpenAI and Tesla's autonomous driving development.

OpenAI released ChatGPT to the public on November 30 via OpenAI’s website and it’s still in the research review phase. It had more than a million users in a matter days.

Read: Who is the founder of ChatGPT?

Sifting through the information provide by WSJ - here are the key findings:

1. In a tender offer, investors purchase shares from current shareholders. In this instance that also applies to OpenAI's staff. Normally issued in public, tender offers specify a limited window of time for stockholders to sell. Frequently, owners receive offers for their shares that are more than the going rate.

2. Thrive Capital and Founders Fund, two venture capital companies, are in discussions to invest in the deal, and their investment would amount to at least $300 million in share sales.

3. No agreement has been struck yet, and the term and conditions (T&C) of any agreement might alter overtime. Even while OpenAI hasn't made much money, it also said that if the transaction goes through, it will make it one of the most valuable US firms.

OpenAI and it's offerings like Dall-E or Dall-E 2 and ChatGPT has already put the major tech players on notice. Google is scrambling to keep itself relevant, whilst Microsoft, an early investor in OpenAI, has already stated they are integrating the AI behind ChatGPT with Bing. Another red flag for Google.

Read: Why has Google CEO Issued a Code Red with the Rise in Use and Popularity of ChatGPT

We at MD-Konsult are closely monitoring the Artificial Intelligence space as it's one of the key trends that will impact businesses in 2023 and beyond. We have already been engaged in several engagements, where our clients are utlizing the ChatGPT techonology to create new offerings. 

Read: How Can Startups Grow and Scale Using Artificial Intelligence in 2023? Our 3 Recommendations