OpenAI to go public? ChatGPT-maker is looking to sell its shares at a valuation of $86 billion

OpenAI has been planning to go public for some time, and is engaged in discussions to sell shares held by current employees for $86 billion valuation. OpenAI is negotiating a tender offer with potential investors

According to sources familiar with the matter, OpenAI, the organization behind ChatGPT, is reportedly engaged in discussions to sell shares held by current employees at an $86 billion valuation.

This development follows a previous report from the Wall Street Journal last month, which stated that OpenAI, with backing from Microsoft, was aiming for a valuation of approximately $90 billion in a share sale.

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.

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

Microsoft currently holds a substantial stake in OpenAI, after it invested about $10 billion earlier this year, and helped them out with a supercomputer to help run their simulations with. Before the $10 billion investment, Google had invested about $1 billion in OpenAI.

(With inputs from agencies)