Money
OpenAI employees seek $6 billion stock sale
OpenAI employees seek $6 billion share sale to SoftBank and others amid company valuation surge to $500 billion
OpenAI employees seek $6 billion share sale to SoftBank and others amid company valuation surge to $500 billion
– OpenAI employees are discussing a potential $6 billion share sale, possibly raising the company’s valuation to $500 billion.
– The company aims for a $20 billion revenue run rate by year-end, with user growth boosting performance significantly.
Current and former employees of OpenAI are exploring the sale of nearly $6 billion in shares to investors, including SoftBank Group and Thrive Capital. According to Reuters, this potential transaction could elevate the company’s valuation to $500 billion, up from the current $300 billion, highlighting OpenAI’s significant growth in user base and revenue amid fierce competition in the AI sector.
Discussions regarding this secondary share sale are in preliminary phases, according to Bloomberg News, and the exact terms may vary. The sale would supplement SoftBank’s involvement in OpenAI’s $40 billion primary funding round.
OpenAI’s flagship product, ChatGPT, has driven a revenue increase, with the company reporting an annualised run rate of $12 billion in the first seven months of the year, aiming for $20 billion by year-end. The Microsoft-backed firm now boasts around 700 million weekly active users for its ChatGPT products, a notable increase from 400 million in February.