OpenAI has completed a deal that values the San Francisco artificial intelligence company at $80 billion or more, nearly tripling its valuation in less than 10 months, according to three people with knowledge of the deal. The company would sell existing shares in a so-called tender offer led by the venture firm Thrive Capital, the people said. The deal lets employees cash out their shares in the company, rather than a traditional funding round that would raise money for business operations. OpenAI, which declined to comment, is now one of the world’s most valuable tech start-ups, behind ByteDance and SpaceX, according to figures from the data tracker CB Insights. The deal is another example of the Silicon Valley deal-making machine pumping money into a handful of companies that specialize in generative A.I. — technology that can generate text, sounds and images on its own. The funding boom kicked off early last year, after OpenAI captured the public’s imagination with the release of the online chatbot ChatGPT. The deal comes at a critical time for OpenAI, providing it with an important vote of confidence after a year of controversy. In November, the company’s board fired Sam Altman, its chief executive, because it lost confidence in his leadership. The dismissal ignited a week of chaos and threw the company’s future into doubt, as employees threatened to resign in solidarity with Mr. Altman. Ultimately, he was reinstated and several board members resigned.In an attempt to resolve last year’s turmoil, OpenAI hired the law firm WilmerHale to review the board’s actions and Mr. Altman’s leadership. WilmerHale is expected to finish its report on the episode early this year. The company agreed to a similar deal early last year. The venture-capital firms Thrive Capital, Sequoia Capital, Andreessen Horowitz and K2 Global agreed to buy OpenAI shares in a tender offer, valuing the company at around $29 billion.
Full story : OpenAI Completes Deal That Values the Company at $80 Billion.
