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New OpenAI deal values company at £63bn

Written by Mon 19 Feb 2024

Image Credit: Reuters

Microsoft-backed OpenAI has completed a deal that values the artificial intelligence (AI) company at £63 billion ($80 billion) or more.

The New York Times reported that the company will sell existing shares in a tender offer led by venture firm Thrive Capital. Employees will be permitted to cash out their shares instead of pursuing a traditional funding round to raise capital for the business.

Last year, OpenAI accepted a similar deal. Reuters reported venture capital firms Thrive Capital, Sequoia Capital, Andreessen Horowitz, and K2 Global agreed to purchase OpenAI shares in a tender offer. This valued the company at around £23 billion ($29 billion), according to the report.

Last month, CEO of OpenAI, Sam Altman, said he intends to utilise funds raised for a chip venture to establish a network of semiconductor manufacturing factories. Altman has talked with several large potential investors to raise sums for chip fabrication plants.

Through the project, there will be a collaboration with leading chip manufacturers and a worldwide network of chip fabrication plants will be established. Abu Dhabi-based G42 and Japan’s SoftBank Group are among the manufacturers who have been in discussion with Open AI’s CEO.

This week, CEO of SoftBank Group, Masayoshi Son, said he was looking to raise up to £79.2 billion ($100 billion) for a chip venture to rival NVIDIA. The Japanese investment company’s new project will supply semiconductors essential for AI.

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Written by Mon 19 Feb 2024

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