In a significant development, OpenAI is in active negotiations to sell shares belonging to its employees at an estimated valuation of A$136 billion, according to people with knowledge of the matter, reports the AFR.
These people, who wished to remain anonymous due to the confidential nature of the discussions, revealed that the artificial intelligence start-up has not yet finalised the allocations and terms may still change.
The start-up, renowned for its ChatGPT technology, is negotiating what is known as a "tender offer" with potential investors.
"The firm had not finalised allocations and terms could still change," said the unnamed sources.
Valuation outpaces other companies
At this valuation, OpenAI would significantly outpace other leading companies.
Led by chief executive Sam Altman and president Greg Brockman, the company counts Microsoft (NASDAQ:MSFT) as a 49% owner.
“At $US86 billion, it would leapfrog the likes of Stripe and Chinese online retailer Shein to become one of the world’s most valuable closely held companies, behind Elon Musk’s SpaceX and TikTok parent ByteDance," stated the original article.
According to a Bloomberg report in August, OpenAI is on track to generate US$1 billion in annual revenue as businesses increasingly incorporate its technology.