ChatGPT Creator OpenAI Holding Talks To Offload Shares Worth $86 Billion

OpenAI is holding talks to sell current employees' shares at an $86 billion valuation, said Bloomberg News quoting people familiar with the matter.

Last month, the Wall Street Journal (WSJ) said that Microsoft-backed OpenAI was seeking a valuation of up to $90 billion for a sale of shares.

ChatGPT, a chatbot that is capable of creating human-like responses based on user prompts, has helped AI's popularity erupt and has triggered a quick jump in the valuation of San Francisco-based company OpenAI. Earlier this year, the company had made a $300 million share sale at a valuation of $30 billion.

According to the report, OpenAI is discussing a tender offer with potential investors. The firm has reportedly not finalized allocations and terms could still change.

Microsoft owns 49% of OpenAI. Sam Altman is the co-founder and CEO of OpenAI. At $86 billion, it has the potential to become one of the world's most valuable closely held companies, behind Elon Musk's SpaceX and TikTok parent ByteDance.