Following the release of its ChatGPT generative AI model last year, OpenAI has been the talk of the town, having singlehandedly unleashed the ongoing mania around everything related to AI. Now, it seems that the startup is trying to cash in on its enduring popularity by tapping the private capital space.
For the benefit of those who might not be aware, OpenAI's ChatGPT is a generative artificial intelligence algorithm that leverages deep learning via Generative Adversarial Networks (GANs) to create new content that is virtually indistinguishable from human-created content. To do so, GANs use two types of neural networks, where a generator creates new content while a discriminator evaluates that content and then provides feedback to the generator. In this way, GANs progressively self-evolve.
As per the reporting by the Wall Street Journal, OpenAI is currently in talks with a number of investors regarding a private offering of its shares, one that could value the AI-focused startup anywhere between $80 billion and $90 billion. Should OpenAI pull off such a feat, it would become the third most valuable private enterprise globally, behind only SpaceX and TikTok's owner, ByteDance.
OpenAI has already announced that it stands to earn around $1 billion in revenue in 2023. A $20-per-month premium tier for ChatGPT offers sure-shot access even during peak times, faster response times, and priority use of new features and improvements.
The startup is currently in a unique sort of partnership with Microsoft, which owns a 49 percent stake in the AI-focused enterprise. Back in January 2023, Microsoft invested $10 billion in OpenAI, bringing its total investments in the revolutionary company to $13 billion. In return for providing this funding, as well as access to its cloud-computing service Azure, Microsoft has received rights to 75 percent of OpenAI's profits until the tech giant is able to recoup the entirety of its $13 billion investment. Thereafter, Microsoft will receive 49 percent of OpenAI's profits until these returns reach the $92 billion mark, after which Microsoft's shares will revert to OpenAI's non-profit foundation.
After peaking toward the start of the summer, interest in everything related to AI has largely stabilized over the past few weeks. This bodes well for the financial prospects of OpenAI and other similar enterprises.
Refference- https://wccftech.com
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