ChatGPT maker OpenAI in talks to sell shares at an $86 billion valuation: Report

OpenAI Shares: OpenAI is in talks to sell its existing employees' shares at $86 billion valuation, reported Bloomberg. As per the report, the AI startup is negotiating the transaction, known as a tender offer, with potential investors. However, the firm still hasn't finalised the allocation and the terms can also change.

Tender Offer

A tender offer is a public solicitation to all shareholders requesting that they tender their stock for sale at a specific price during a certain time. The tender offer typically is set at a higher price per share than the company's current stock price, providing shareholders a greater incentive to sell their shares.

Also Read: OpenAI spends $700,000 daily on ChatGPT; Sam Altman's company may go bankrupt in 2024: Report

Shares Sale

If the sale goes through, at $86 billion valuation, OpenAI which is led by Chief Executive Officer Sam Altman and President Greg will become one of the world's most valuable closely held companies behind Elon Musk’s SpaceX and TikTok parent ByteDance.

A closely held company is a company which is owned by an individual or small group of shareholders, who are often members of the same family. Shares of a closely held corporation are generally not traded in the securities market(s).

The shares sales would also make OpenAI which counts Microsoft as a 49% owner would help the company to overtake the likes of Stripe and Chinese online retailer Shein.