OpenAI, supported by Microsoft, has reached 700 million weekly users, prompting discussions of a $500 billion valuation amid early talks for a share sale. This development allows current and former employees to liquidate billions in shares before a potential IPO. The company’s valuation has surged from $300 billion in its latest funding round, driven by rapid user growth and doubled revenue, which hit a $12 billion annualized run rate, with projections of $20 billion by year-end. The competitive landscape in AI is heating up, as Meta invests significantly in Scale AI to attract new talent. Existing investors like Thrive Capital are exploring participation in the share sale. OpenAI may also undergo a major corporate restructuring, potentially moving away from its capped-profit model to facilitate a future public listing. CFO Sarah Friar emphasized that an IPO is contingent on market readiness. For insights on AI and technology, consider engaging with our Diplo chatbot.
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