OpenAI, the company behind the artificial intelligence (AI) platform ChatGPT, has reportedly recently embarked on a journey of profound changes to its business.
The latest development in this quest is the conclusion of a major fundraising effort that secured $6.6 billion from major firms, including Fidelity, Thrive Capital, Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA).
The drive also revealed that OpenAI is, as of October 3, valued at approximately $157 billion.
Finbold Research found that such a valuation would mean that the artificial intelligence (AI) powerhouse would be among the 100 most valuable companies in the world had it gone public.
According to the global market capitalization data available on October 3, it would have taken the 100th spot behind Siemens (ETR: SIE), pushing Contemporary Amperex Technology (SHE: 300750) to 101st place.
Hypothetical IPO would see OpenAI valued above BlackRock
While being slightly behind Siemens might appear somewhat underwhelming given OpenAI’s prominence – and the valuation of other major players in the AI boom such as Nvidia – Sam Altman’s firm would still be ahead of numerous exceptionally large and well-established corporations.
Goldman Sachs (NYSE: GS), Uber (NYSE: UBER), BlackRock (NYSE: BLK), Lockheed Martin (NYSE: LMT), Nike (NYSE: NKE), and Sony (TYO: 6758) all have lower market capitalizations ranging from $119.7 billion to $155.37 billion.
Additionally, upon going public, OpenAI’s valuation could rapidly expand toward $1 trillion – or, on the flip side, collapse below $100 billion – depending on how much momentum the AI boom has at that moment.
Nonetheless, despite the revelation about the high valuation, it is worth pointing out it is unlikely regular investors will be able to trade OpenAI any time soon.
According to the information available at press time on October 2, there are no indications the makers of ChatGPT will conduct an initial public offering (IPO) in the foreseeable future.
For-profit shift rumors drive OpenAI executives away,
Whatever the case may be, the massive fundraises came at a time when an increasing number of corporate giants are eying large-scale investments in AI infrastructure and when OpenAI is reportedly planning to drop its non-profit label.
Indeed, late in September, the alleged changes within the company led to its CTO, Mira Murati, and several other executives departing.
The considered shift to a ‘for-profit benefit corporation’ also drove speculation that Sam Altman was set to receive equity in the firm.
The equity allegations, though subsequently denied, drew particular attention as they would increase Altman’s wealth by nearly $11 billion at current valuations.
