OpenAI Reportedly Readies Share Sale Valuing Company at $90 Billion

The media reports that OpenAI is currently preparing to sell shares with an estimated value of the company at $90 billion.

OpenAI Reportedly Readies Share Sale Valuing Company at $90 Billion

According to journalists, the prospects for the implementation of this transaction depend on the actions and decisions of wealthy investors in the Middle East. Against the background of the ongoing armed conflict in this region, the probability of starting the sale of shares of the developer of the world’s most popular chatbot based on artificial intelligence called ChatGPT is not the maximum.

The media reports that OpenAI is currently negotiating for dozens of employees of this company to have the opportunity to sell tens of millions of private shares as part of a tender offer, which, according to preliminary information, will end on October 21.

Insiders referred to by journalists claim that there is a great demand for the securities of the ChatGPT developer abroad. Separately, the media note that investors from the Persian Gulf countries, among others, are interested in buying shares of one of the most promising companies operating in the sphere of machine intelligence.

At the same time, insiders say that the forecast for this kind of technology deal is currently unclear. The current state of affairs, including in the political area, complicates the process of selling shares of the developer of the world’s most popular chatbot based on artificial intelligence. American investors are showing restraint regarding the possibility of acquiring securities of a technology company, according to insiders, because of the high cost. The armed conflict between Israel and Hamas creates a factor of instability, related to which the sovereign funds of the Gulf countries are very cautious about all deals.

One insider says that the fact that Saudi Arabia is silent about the conflict is evidence that everyone who takes money will think long and hard before taking another political dollar.

Some experts say that the current tensions in the Middle East will reduce the activity of local investors, but they are convinced that in the short term, the situation will normalize.

Currently, 49% of OpenAI is owned by Microsoft. The tech giant invested $1 billion in ChatGPT developers in 2019. This year, Microsoft provided the company with $10 billion in financing.

OpenAI has not yet provided comments in response to a media request for information about plans to start selling the company’s shares.

Last week it became known that the creator of ChatGPT is working on updates that will increase the efficiency of its artificial intelligence models and make AI configurations more accessible to developers. The media reported that these updates provide for the addition of memory storage to the developer tools.

Experts say that new solutions can potentially reduce costs for the creators of apps up to 20 times. The financial availability of the product is a very important issue for OpenAI, as the company strives to support partners in creating a sustainable business based on machine intelligence software.

The high cost of artificial intelligence is primarily due to the significant computing power required for the full functioning of digital thinking systems. This circumstance is something like an inconvenient and expensive reality, the objectivity and legitimacy of which cannot be disputed. Also, those companies that strive for a high level of competitiveness in the sphere of artificial intelligence cannot avoid significant costs.

The Microsoft Bing AI chatbot, powered by OpenAI technology, according to preliminary estimates, needs at least $4 billion to create the infrastructure necessary for the operation of this digital product. The ChatGPT developer spends up to $700,000 daily to maintain its infrastructure and servers. At the end of last year, OpenAI faced losses of $540 million.

Machine intelligence models need constant retraining and fine-tuning to maintain a high level of relevance and security. This need exists regardless of user activity. From the point of view of calculations, the corresponding process is complex.

Experts predict that by 2032, the generative artificial intelligence industry will grow to $1.3 trillion.

As we have reported earlier, OpenAI Reportedly to Explore Development of Artificial Intelligence Chips.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.