SA¹ú¼Ê´«Ã½

Artificial intelligence

What You Need To Know About OpenAI’s $300M Share Sale

Illustration of robots at chalkboard-Artificial Intelligence

is adding another notch (or five) to its belt.

The maker of the famous generative AI language processing platform closed a $300 million share sale at a valuation between $27 billion and $29 billion, on Friday, citing official documents.

Search less. Close more.

Grow your revenue with all-in-one prospecting solutions powered by the leader in private-company data.

This could mean OpenAI is wrapping up a months-long tender offer earlier this year.

As a result of the share sale, the company brought on a slew of new investors from longtime OpenAI backers , , and , along with newcomers , and .

Active funding to AI

OpenAI did not confirm the news, but the nonprofit-turned-startup continues to dominate the tech startup conversation, driving one third of all funding in January. That was largely due to OpenAI’s (reportedly) massive $10 billion raise that came from .

OpenAI is still actively dealmaking, a sign that the generative AI hype isn’t slowing down any time soon. Riding on the coattails of ChatGPT’s success are several generative artificial intelligence companies. In less than than half a year, startups in the AI space have raised over $18 billion and are on track to beat the $41 billion they raised in 2022, per SA¹ú¼Ê´«Ã½ data.

The deal between Microsoft and OpenAI is still the biggest funding round dedicated to the space. , an AI and quantum computing startup out of Palo Alto raised $500 million in February. , which uses AI to change the way people use and interact with computers, raised $350 million in Series B funding in March.

Unfortunately, no matter how much other startups insist they are and have always been AI companies, funding towards other sectors is still slow as interest rates and valuations still adjust to the new normal in tech.

 

Stay up to date with recent funding rounds, acquisitions, and more with the SA¹ú¼Ê´«Ã½ Daily.

Copy link