OpenAI, the creator of ChatGPT, is considering a secondary share sale at a $500 billion valuation, possibly bringing the company closer to an IPO.
OpenAI's Secondary Share Sale
OpenAI is in talks regarding a secondary share sale for current and former employees. This sale is expected to raise more than last year's $1.5 billion, with the company targeting billions from these transactions.
Changes in Funding Strategy
Sources familiar with OpenAI's funding report new approaches to capital raising, including support from Dragoneer Investment Group. Investments are also expected from other funds such as TPG and Blackstone, with participation in this round from venture capital firms like Thrive Capital and Andreessen Horowitz.
Preparing for IPO
The influx of new investments suggests that OpenAI is getting closer to an IPO. The company's CEO has confirmed that the funding strengthens its position ahead of a public offering. OpenAI's CFO, Sarah Friar, noted the need for the organization to be prepared for public listing, emphasizing the requirement for predictability and a sustainable business structure.
OpenAI's approach to funding and plans for a secondary share sale illustrate its intention to develop the business towards an IPO, which could significantly impact the market for tech and AI companies.
