OpenAI is in talks to sell employee shares at a valuation of $86 billion, making it one of the world's most valuable private companies, Bloomberg reports. The AI startup, known for its GPT language models and ChatGPT, is negotiating the offer with potential investors.
Microsoft owns 49% of OpenAI, which is reportedly on track to generate $1.3 billion in annual revenue, exceeding investor expectations. The biggest revenue driver is subscriptions to ChatGPT Plus. The new figure suggests more than $100 million in monthly revenue, but due to the high cost of training and deploying large language models, OpenAI doesn't expect to be profitable in the near term. The company will likely continue to raise funds for computing costs to develop and maintain its AI systems.
