OpenAI in talks to sell shares at $86 billion valuation – Bloomberg News

Illustration shows OpenAI logo

A keyboard is placed in front of a displayed OpenAI logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing Rights

Oct 18 (Reuters) – ChatGPT creator OpenAI is in talks to sell existing employees’ shares at an $86 billion valuation, Bloomberg News reported on Wednesday, citing people with knowledge of the matter.

Last month, the Wall Street Journal had said that OpenAI, which is backed by Microsoft (MSFT.O), was seeking a valuation of up to $90 billion for a sale of shares.

OpenAI did not immediately respond to a Reuters request for comment.

ChatGPT, a chatbot that can generate human-like responses based on user prompts, has helped AI’s popularity erupt and has fueled a meteoric rise in the valuation of San Francisco-based OpenAI. The company had earlier this year made a $300 million share sale at a valuation of $30 billion.

OpenAI is negotiating a tender offer with potential investors, Bloomberg reported, adding that the firm has not finalized allocations and terms could still change.

Reporting by Jaspreet Singh in Bengaluru; Editing by Sriraj Kalluvila

Our Standards: The Thomson Reuters Trust Principles.

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