- OpenAI is in talks to sell shares of its company in a tender offer, according to the Wall Street Journal.
- A tender offer is a bid to purchase some or all of shareholders' stocks in a company.
The year has started off strong for ChatGPT, the viral new chatbot that uses artificial intelligence to write $4, $4, and may ultimately $4.
$4 to the Wall Street Journal, OpenAI, the startup behind ChatGPT, is in talks to sell existing shares of its company in a tender offer that would value the company at $29 billion.
Venture capital firms Thrive Capital and Founders Fund are in talks to invest in the deal, and their investment would total at least $300 million in share sales, the Journal $4 citing people familiar with the matter.
A tender offer is one in which investors buy shares from existing shareholders. In this case, that includes OpenAI's employees, the Journal $4.
Tender offers are typically made publicly and set a specific window of time for shareholders to sell. Oftentimes, shareholders are offered a price above the market price for the shares.
No deal has been reached yet and the terms of the deal might be subject to change, the Journal $4. However, if the deal does go through it would make OpenAI one of the most valuable US startups even though it hasn't generated much revenue, it also $4.
Amid a chilly environment where venture capital investors have largely pulled back from funding new startups, OpenAI would also be one of the few startups to raise money at a higher valuation on the private market, $4 to the Journal.
$4, the artificial intelligence based image-generating platform.
A spokesperson for OpenAI told Insider that the company is not commenting on the deal.