The artificial intelligence startup is negotiating the tender offer with potential investors, people in know told Bloomberg. The firm is yet to finalise allocations and terms could still change.
OpenAI, which counts Microsoft Corp. as a 49% owner, is led by Chief Executive Officer Sam Altman and President Greg Brockman. With this transaction, it would surpass the likes of Stripe and Chinese online retailer Shein to become one of the world’s most valuable closely held companies, behind Elon Musk’s SpaceX and TikTok parent ByteDance.
The company is on track to generate $1 billion of annual revenue as businesses adopt the technology, Bloomberg reported in August.
The Wall Street Journal last month reported that OpenAI was discussing a potential share sale that would value the startup at $80 billion to $90 billion.