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Business InsiderSep 02, 2023
Report: OpenAI Considering Selling Shares at $86B Valuation
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The Facts
Artificial intelligence (AI) startup OpenAI is reportedly discussing selling existing employees' shares at a valuation of $86B in a transaction known as a tender offer.
The firm is reportedly negotiating with potential investors, which means it hasn't finalized allocations and the parameters of the deal could still evolve.
The Spin
Narrative A
Employees at OpenAI have done a great job getting ahead of the AI industry curve and creating a chatbot with hundreds of thousands of users. They deserve to cash in on the company’s success. This offering will also allow OpenAI to attract more talent and compete with bigger tech firms and it's a win-win.
Narrative B
Employees at OpenAI shouldn't start spending their windfall just yet. This valuation possibly relies on funding from Middle East-based investors who may not be in a position to contribute in light of the conflict in the region. There are major question marks and OpenAI is still a ways away from its big payday.
