According to a report from The Wall Street Journal, OpenAI has plans to sell additional shares to investors. The key issue here is the proposed selling price, which will be based on a valuation of up to a staggering $8-9 billion, nearly triple the value at the beginning of the year. This would make OpenAI one of the highest-valued startups in the world.
Data from CBInsights shows that there are currently only two startups with higher valuations than OpenAI, if it manages to sell shares at this aforementioned value. These are ByteDance, the owner of TikTok ($225 billion), and SpaceX ($137 billion).
OpenAI expects to generate approximately $1 billion in revenue this year, both from general customers subscribing to ChatGPT Plus and from selling AI LLM licenses to leading organizations for further development.
However, it is important to note that this share offering does not involve the company raising capital to boost its cash flow. Instead, it entails employees selling a portion of their shares. Presently, OpenAI is predominantly held by Microsoft, which owns 49% of shares after investing around $10 billion earlier this year.
TLDR: OpenAI plans to sell additional shares, potentially valuing the company at $8-9 billion, making it one of the most valuable startups globally. Only ByteDance, the owner of TikTok, and SpaceX currently have higher valuations. OpenAI anticipates earning around $1 billion in revenue this year. While this share offering won’t increase the company’s cash flow, it does provide an opportunity for employees to sell their shares. Microsoft is the main shareholder, holding 49% of OpenAI shares.