• OpenAI’s valuation surged to over $80 billion following a stock sale agreement with Thrive Capital, marking a threefold increase from nine months ago and positioning it as the world’s third-highest valued startup.
  • The company’s recent deal involves selling existing stocks, allowing employees to cash out, and signifies substantial investor interest in OpenAI’s potential.
  • Despite internal upheavals and CEO transitions, OpenAI continues to advance rapidly in AI development, exemplified by its latest product, Sora, which generates videos based on text prompts.

With the latest stock sale agreement between OpenAI and venture capital firm Thrive Capital, OpenAI’s valuation has soared to over $80 billion, marking nearly a tripling from nine months ago and making it the world’s third-highest valued startup.

Reports last year suggested a potential stock sale deal valuing OpenAI at $90 billion. According to recent reports, OpenAI will sell existing stocks based on the acquisition offer led by Thrive, allowing employees to cash out their stakes. This deal places the company’s valuation close to $80 billion.

In comparison, nine months ago, OpenAI’s valuation stood at around $27 billion when it completed a $300 million stock sale. With an $80 billion valuation, according to data from intelligence website CB Insights, OpenAI becomes the third-highest valued tech startup globally, trailing only ByteDance ($225 billion) and SpaceX ($150 billion) led by Elon Musk.

ChatGPT sparked a surge of interest in AI

Established in 2015, OpenAI gained widespread attention, notably with the release of its AI chat tool, ChatGPT, at the end of 2022, sparking a surge of interest in AI throughout the year.

OpenAI had a remarkable year in 2023, attracting significant attention and investments from numerous tech companies and investors. Microsoft has invested a total of $13 billion in OpenAI, although the tech giant states it does not hold any shares but has the “right to share profit distribution.”

In April last year, several venture capital firms, including Thrive, Sequoia Capital, Andreessen Horowitz, and K2 Global, agreed to purchase new shares of OpenAI, bringing its valuation to around $27 billion.

Also read: OpenAI cures GPT-4 ‘laziness’ with new updates

There is no immediate plans for an IPO

OpenAI CEO Sam Altman was briefly ousted from the company last year but swiftly reinstated after causing a stir internally. He stated that the company has no immediate plans for an IPO.

Currently, OpenAI continues its rapid progress in AI development. OpenAI unveiled its latest product, Sora, which can generate videos based on text prompts. However, the video service is not yet open to the public, and it remains unclear when it will be available as OpenAI states it is taking “several important safety measures” to address potential issues related to misinformation and bias.