OpenAI is in early talks for a secondary share sale potentially valuing the AI powerhouse at $500 billion. This follows a recent $8.3 billion funding round led by Dragoneer Investment Group, positioning OpenAI to reach a $40 billion valuation by year’s end. A significant share sale will primarily involve current and former employee shares, attracting interest from backers like Thrive Capital. The previous funding round, oversubscribed five times, showcased strong demand, forcing reductions for early investors as new strategic partners entered. OpenAI’s annual revenue surged from $10 billion to over $13 billion, with predictions of exceeding $20 billion by year-end, solidifying its lead against competitors. While OpenAI is preparing for a future IPO, its timeline remains unconfirmed, hinging on Microsoft’s backing. OpenAI’s investor confidence highlights its potential for significant growth in the fast-evolving AI market, positioning it as a formidable competitor to giants like Meta.
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