OpenAI Valued at $90B, Eyes Middle East Investors for Share Sale
Portfolio Pulse from Anusuya Lahiri
OpenAI, the parent company of ChatGPT, is close to selling shares in a deal that values the company at $90 billion. The deal, which could depend on investors from the Middle East, would allow OpenAI's employees to sell their existing shares. OpenAI, co-founded by Sam Altman and 49% owned by Microsoft Corp (NASDAQ:MSFT), is in talks to help its employees cash out of private stock in a tender offer that’s likely to close on October 21. However, the outlook for such tech deals is uncertain as U.S. investors appear to be withdrawing at OpenAI’s price tag.
October 13, 2023 | 12:06 pm
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Microsoft, which owns 49% of OpenAI, could be impacted by the proposed share sale. The deal could potentially increase the value of Microsoft's stake in OpenAI, but the uncertainty surrounding the deal could also pose risks.
Microsoft's stake in OpenAI means that any significant financial moves by OpenAI could potentially impact Microsoft. The proposed share sale could increase the value of Microsoft's stake if it goes through and is successful. However, the uncertainty surrounding the deal, including the reliance on Middle East investors and the withdrawal of U.S. investors, could pose risks.
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