According to The New York Times, the artificial intelligence startup OpenAI has closed a deal for at least $80 billion, nearly tripling its valuation in less than a decade.
Employees will be able to cash out their shares through the sale of existing shares in a tender offer, as part of a deal spearheaded by venture capital firm Thrive Capital. After ByteDance and SpaceX, OpenAI is one of the most valuable tech start-ups in the world, specialized in generative AI.
This funding increase provides OpenAI with confidence following a turbulent year at a crucial juncture. When CEO Sam Altman was momentarily removed in November, there was internal strife and concern for the company’s survival.
A law firm is currently examining the events of last year, and Altman was later restored. The most recent deal for OpenAI is comparable to one that occurred last year, when the business was valued at $29 billion.
A.I. ventures have drawn investors, who have been flooding the market with capital. Microsoft’s $13 billion investment in OpenAI in January of last year was a reflection of the industry’s continuous expansion, while competing startups were able to raise $6 billion from large players such as Google and Amazon.
OpenAI’s fast rise in valuation illustrates the industry’s ongoing appeal despite substantial financial support from major players in the field. It also demonstrates growing investor trust in AI enterprises in spite of internal issues.
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