OpenAI in talks for tender offer valuing company at $29 billion

OpenAI, the artificial intelligence research lab behind chatbot ChatGPT, is in talks to sell existing shares in a tender offer that would value the company at about $29 billion, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

The report added that the deal is structured in a way in which venture capital firms Thrive Capital and Founders Fund will buy shares from existing shareholders such as employees.

The deal would attract investment of at least $300 million in share sales, it added.

Billionaire and Tesla Inc CEO Elon Musk founded the research organization with investor Sam Altman.

Microsoft Corp (MSFT.O) which invested $1 billion in OpenAI in 2019, was working to launch a version of its search engine Bing using the AI behind the now viral ChatGPT, the Information reported on Tuesday.

OpenAI’s chatbot is a software application designed to mimic human-like conversation based on user prompts and can respond to a large range of questions while imitating human speaking styles.

The firm expects business to surge as it pitched to investors saying the organization expects $200 million in revenue next year and $1 billion by 2024, Reuters reported in December.

OpenAI and Thrive Capital declined to comment, while Founders Fund did not immediately respond to a Reuters request for comment. Reuters