According to a New York Times report, OpenAI has sealed a deal catapulting its valuation to a staggering $80 billion or more, marking a remarkable tripling of its worth in under 10 months. The San Francisco-based artificial intelligence powerhouse executed the transaction through a tender offer led by venture firm Thrive Capital, allowing employees to cash out their shares rather than opting for a traditional funding round.
The surge in valuation mirrors the Silicon Valley trend of injecting substantial funds into companies specializing in generative AI, particularly renowned for autonomously producing text, sounds, and images.
Amid a backdrop of controversy and leadership shake-ups, this deal arrives at a crucial juncture for OpenAI, delivering a crucial vote of confidence. Following the dismissal of CEO Sam Altman last November, a move that sparked internal unrest and questions about the company’s future, Altman was reinstated after a tumultuous week of negotiations. To address last year’s tumult, OpenAI enlisted the law firm WilmerHale to scrutinize board actions and Altman’s leadership, with results expected early this year.
This transaction echoes a similar move from early last year when venture capital heavyweights Thrive Capital, Sequoia Capital, Andreessen Horowitz, and K2 Global participated in a tender offer, valuing OpenAI at around $29 billion.
Investors’ fervor for AI companies remains unabated, with Microsoft injecting a total of $13 billion into OpenAI. Meanwhile, rival Anthropic secured $6 billion from Google and Amazon, Cohere raised $270 million, and Inflection AI garnered a staggering $1.3 billion, underscoring the industry’s robust financial support.
OpenAI’s latest deal, which took shape amidst the unexpected firing of Altman, reinforces its resilience and dominance in the AI landscape. The company’s steadfast trajectory is a testament to its unwavering appeal in the dynamic realm of artificial intelligence.
