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- 1 In a recent tender offer led by Thrive Capital, OpenAI valuation reached $80 Billion.
- 2 The firm reached a nearly three times increase in less than 10 months, valued at $29 Billion in June 2023.
- 3 The recent announcement of OpenAI on Sora, a video AI model seeks the world’s attention towards the platform.
OpenAI, one of the leading players in the field of technology sealed a deal on February 16 that boomed OpenAI valuation to $80 Billion. The valuation has nearly tripled in less than 10 months, according to The New York Times.
Reason Behind Rise in OpenAI’s Valuation
OpenAI, the company that revolutionized Artificial Intelligence (AI) reportedly planned to sell its current shares in a ‘tender offer’ to raise capital for business operations. To do so, the company allowed employees to sell their shares and cash out their shares.
The tender offer was led by venture firm Thrive Capital which issued new shares for fundraising.
The deal comes at a critical time for OpenAI when the CEO, Sam Altman planned to raise $7 Trillion in new funding following a $5 Million investment in Research & Development. The purpose is to advance semiconductor technologies in the USA and expand the global supply of AI chips.
The hike in OpenAI valuation showcases the Silicon Valley trend of injecting significant funds into firms operating in generative AI. Also, the move echoes a similar step from early last year when OpneAI sold its shares. In the 2023 tender offer, firms including Thrive Capital, K2 Global, Sequoia Capital, and Andreessen Horowitz agreed to buy OpenAI shares which led OpenAI valuation of nearly $29 Billion.
Moreover, OpenAI in a discussion with investors in December 2023, revealed a plan to invest more than $100 Billion in the company.
Since the launch of ChatGPT in 2022, the platform kicked off the buzz around AI. Recently, OpenAI announced its new generative AI model, Sora.
The arrival of Sora
To process and make sense of written content, OpenAI launched its latest creation, Sora. It is a video AI model that permits users to develop 60-second videos based on text prompts. The company took to X to announce the same.
The advanced tool is capable of transforming textual directives into attractive and dynamic visual narratives. The platform has the potential to boost the individual’s creativity to craft words into imaginative 60-second videos.
With these launhces, OpenAI aims to fulfill its commitment to refining the AI models and empowering individuals to handle challenges that require real-world and relevant solutions.
The platform is prepared to advance the field of generative AI and holds some advanced and outstanding features than other existing tools.
Its user-friendly editing permits users to add and adjust videos. Also, the AI Magic Resizer feature ensures video fits perfectly into the social media platforms.
A few of the exciting features offered by the respective tool include editing options, multilingual translation capabilities, and animation enhancements, making it a universal all-in-one video designing tool.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
