OpenAI’s valuation has doubled since 2021.
OpenAI, the parent company of popular language bot ChatGPT, has skyrocketed in valuation and popularity since November.
In 2021, the tech firm had roughly a $14 billion valuation, and is now valued at about $29 billion, according to Semafor.
Microsoft this month agreed to a $10 billion investment in OpenAI.
OpenAI, the parent company of the immensely popular language tool ChatGPT, has more than doubled in value since 2021.
Microsoft confirmed on Monday plans to invest $10 billion. Semafor reported earlier that the funding, which would also include other venture firms, would value OpenAI at $29 billion.
That sandwiches it between valuations for unicorn startups Chime and Fanatics, per data from CBInsights.
While Microsoft and OpenAI have yet confirm the higher valuation, it would represent a more than doubling from the valuation of about $14 billion from a prior completed tender offer in 2021.
Microsoft first bet on OpenAI in 2019 with a $1 billion investment. However, in maintaining a minority stake, Microsoft is able to benefit from the technology without taking flak for any potential ethical quandaries, as Axios noted.
As for the viral bot, it accrued more than 1 million users within five days of launching in November, and has since demonstrated startling, human-like language across tasks from dating app messaging and medical school exams to investment advice.
And not only can you ask it what to do, but you can dictate the style of its response. For example, you can request a news article about stocks, in the style of Insider.
The internet sensation even garnered attention among the global elite at the World Economic Forum in Davos, Switzerland.
To be sure, ChatGPT has impressed casual users, teachers, journalists, and researchers alike, yet some investors remain skeptical about the long-term prospect of OpenAI as a revenue-generating enterprise, according to the Wall Street Journal. For now, ChatGPT is free.
Meanwhile, the effectiveness of ChatGPT as a question-and-answer tool has drawn attention from Google, a name that’s long been synonymous with the internet search engine.
Last month, the New York Times reported that Google management issued a “code red” over ChatGPT’s increasing traction, and CEO Sundar Pichai redirected some teams to prioritize building out AI products.