OpenAI was valued at $80bn after the company allowed employees to sell their shares

Microsoft-backed OpenAI has completed a deal that will value the artificial intelligence company at more than $80bn.

Here's What We Know

The company will sell existing shares in a so-called tender offer led by venture capital firm Thrive Capital, Employees will be able to cash in their shares in the company but not conduct a traditional funding round to raise funds.

Negotiations for such a deal have been underway since early 2023. OpenAI has previously raised large investments from Microsoft, including $10bn in January 2023.

The excitement around ChatGPT has encouraged companies to integrate AI capabilities into their products. In particular, Microsoft has implemented the technology in the Bing search engine and continues to develop its own developments in this area.

According to media reports, OpenAI was also in talks to acquire a chip maker to expand access to the computing power required for its tools.

The recent deal was OpenAI's biggest backing since the brief crisis at the end of 2023 due to the temporary firing of CEO Sam Altman.

Source: The New York Times