OpenAI, the renowned artificial intelligence (AI) start-up behind ChatGPT, is set to reach new heights as its valuation triples, potentially exceeding $90 billion. The company’s soaring worth would surpass that of well-established AI players like Microsoft, Alphabet, and Nvidia, according to a recent report by The Wall Street Journal.
OpenAI is currently engaged in discussions with investors regarding the possible sale of shares at this impressive valuation. This move would grant employees the opportunity to sell their stock to external investors, while venture firms have previously acquired OpenAI shares through tender offers.
Reports suggest that OpenAI has informed investors of its projected revenue of $1 billion for this year alone. Additionally, they anticipate generating substantial profits amounting to several billions in 2024. These estimates are based on insider discussions and insights shared with The Wall Street Journal.
While the basic version of OpenAI’s groundbreaking ChatGPT remains free, the company has begun charging individuals for access to more advanced and powerful features. Moreover, companies seeking to incorporate OpenAI’s vast language models into their products are willingly paying for licensing privileges.
The remarkable $90 billion valuation implies that investors would be paying an astounding $90 for every dollar of revenue generated this year. Consequently, this valuation would position OpenAI far ahead of other prominent tech companies in terms of market value.
OpenAI’s exponential growth and constant innovation in the AI sector make it a formidable force in the market. With its soaring valuation, the future looks incredibly promising for this groundbreaking company.