OpenAI finalized a deal valued at a staggering $80 billion

OpenAI’s latest deal, reportedly valuing the California-based start-up at $80 billion or more, marks a significant milestone for the company, according to reports from The New York Times. This valuation represents a nearly triple increase in value in less than a year for the pioneering inventor of ChatGPT and other generative artificial intelligence technologies.

The deal involves OpenAI selling existing shares to investors led by Thrive Capital, allowing executives and employees to sell shares at a favorable price. This development comes just three months after the company weathered a major crisis involving the firing and subsequent rehiring of CEO Sam Altman.

OpenAI gained widespread recognition in late 2022 with the release of its ChatGPT program, which demonstrated AI’s capabilities in generating text, sounds, and images on demand. Microsoft, an existing investor, significantly increased its involvement, reflecting the intense competition among tech giants like Google and Amazon to leverage AI’s generative potential.

The company’s journey has not been without challenges, as evidenced by the recent crisis surrounding Altman’s dismissal and subsequent reinstatement. However, OpenAI has continued to innovate, recently unveiling “Sora,” a tool capable of creating realistic videos on demand.

This latest deal follows a previous agreement reached early last year with venture-capital firms, which valued OpenAI at $29 billion. The company’s rapid rise in valuation underscores the growing importance of AI technologies and the competitive landscape in the tech industry.

Business News: OpenAI finalized a deal valued at a staggering $80 billion