OpenAI, the developer behind the popular ChatGPT chatbot, is reportedly considering a tender offer that could value the company at around $29bn. The offer, which is being negotiated with venture capital firms Thrive Capital and Founders Fund, would involve purchasing a specified number of shares from existing shareholders at a fixed price and roughly double OpenAI’s valuation from its previous tender offer in 2021, when it was valued at around $14bn.
If the deal goes through, it would make OpenAI one of the most valuable start-ups in the US. The company’s value has likely been boosted by the widespread popularity of ChatGPT, which gained more than one million users within the first five days of being made available to the public. OpenAI generates revenue by selling its AI software to developers and is funded through donations, sponsorships, and grants from companies such as Microsoft and philanthropists including Elon Musk and Sam Altman.