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19 Feb 2024
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OpenAI Reaches A Valuation Of $80 Billion After Its Latest Agreement.



OpenAI, the artificial intelligence (AI) company founded by a group of tech visionaries including Elon Musk, Peter Thiel and Reid Hoffman, has seen its valuation skyrocket to $80 billion or more, the New York Times reported on Friday, citing to several people with knowledge of the agreement. The company plans to sell existing shares in a public takeover bid led by venture capital firm Thrive Capital, allowing employees to cash out their shares in the company instead of a traditional financing round, which would raise money for the business, according to the report.

The AI company agreed to a similar deal early last year. Venture capital firms Thrive Capital, Sequoia Capital, Andreessen Horowitz and K2 Global agreed to buy OpenAI shares in a takeover bid, valuing the company at about $29 billion. OpenAI has attracted several major funding rounds, including Microsoft's $10 billion investment in January 2023. The company also received funding from Microsoft in 2019 and 2021.


The launch of OpenAI's ChatGPT in late 2022 generated a lot of buzz around AI, leading companies to explore ways to harness the power of the technology. AI has been integrated into several products, including Microsoft's Bing search engine, which continues to advance with its own developments. Just a few days ago, OpenAI announced the launch of Sora, a tool that can generate videos from text. The day before, it announced that it was experimenting with adding deeper memory to ChatGPT so that the tool can remember more of its users' conversations.


OpenAI CEO Sam Altman has also held talks about acquiring a chipmaker or increasing the company's access to the expensive AI chips its tools depend on. The latest deal is the biggest endorsement for the company following a brief period of turbulence in late 2023, in which Altman was fired by the company's board of directors before being rehired following employee outrage. The big investments in OpenAI have caught the attention of regulators, who said in January they would investigate whether Microsoft's backing raises competition concerns. On January 24, the US Federal Trade Commission said it was investigating whether investments by Microsoft, Google and Amazon in AI companies, including OpenAI, harm competition.

OpenAI is a company dedicated to creating and disseminating artificial general AI (AGI) that can benefit all of humanity, without being limited by a single goal or domain. Its mission is to ensure that AI is aligned with human values and can be controlled by its users. Among its most notable projects are GPT-3, a natural language model capable of generating coherent and diverse texts from any input; DALL-E, a model capable of creating realistic images from textual descriptions; and Codex, a system that can generate programming code from natural languages.

OpenAI has also developed several AI agents that can compete and outperform humans in complex games such as Dota 2, StarCraft II, and Go. Although the company faces several challenges, such as a shortage of AI chips, regulation of AI ethics and safety, and competition from other companies and countries that are also seeking to lead the field of AI. However, OpenAI is also supported by some of the greatest experts and innovators in the field of AI, as well as a large community of researchers, developers and users who share its vision of creating AI that can improve the world.

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