Employees of AI firm OpenAI are reportedly mulling over the sale of nearly $6 billion worth of shares to investors, including SoftBank Group SFTBY and Thrive Capital.
OpenAI May Hit $500 Billion Valuation Amid Soaring Growth
The proposed deal could reportedly catapult OpenAI’s valuation to $500 billion, marking a significant leap from its current $300 billion. This move highlights the company’s accelerated user and revenue growth, along with the intense competition in the AI industry for talent, as per Reuters.
This move underscores OpenAI’s remarkable growth in terms of user base and revenue, and the intense competition among AI firms for skilled talent. SoftBank, Thrive and Dragoneer Investment Group, all existing OpenAI investors, have yet to comment on the matter.
OpenAI, best known for its flagship product ChatGPT, has doubled its revenue in the first seven months of the year, reaching an annualized run rate of $12 billion. According to the publication, the company is on track to hit $20 billion by year-end. ChatGPT products now attract around 700 million weekly active users, up from 400 million in February.
OpenAI did not immediately respond to Benzinga’s request for comment.
SEE ALSO: Jeff Bezos Once Asked Warren Buffett Why People Don’t Just Copy His ‘Simple’ Investment Strategy —He Said ‘Because No One Wants To Get Rich Slow’ – Benzinga
OpenAI Lands US Federal Deal, Expands Reach
Earlier in August, SoftBank’s shares surged by 10% after the company teased a $12 billion windfall from OpenAI, highlighting the potential profitability of AI investments.
CEO Sam Altman had previously stated that the company would need to spend trillions on AI infrastructure, drawing parallels to the dot-com bubble of the late 1990s. This proposed share sale could be a step towards accumulating the necessary capital.
Furthermore, OpenAI recently secured a partnership with the U.S. General Services Administration, providing federal agencies access to its leading frontier models through ChatGPT Enterprise for $1 per agency for the next year. This partnership could further boost the company’s user base and revenue.
READ MORE:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.