'Is this pump and dump,' ask netizens as OpenAI seeks $90-bn valuation in possible share sale

OpenAI, the artificial intelligence startup behind ChatGPT, is currently in discussions with investors regarding a potential sale of its existing shares at a significantly higher valuation compared to just a few months ago, as per information from two sources familiar with the situation.

According to a report by the Wall Street Journal, this proposed transaction could place the Microsoft-backed company, OpenAI, at a valuation ranging from $80 billion to $90 billion. This move would position OpenAI as one of the world's most valuable private companies, coinciding with a surge in enthusiasm for AI startups, particularly following the successful launch of ChatGPT last year.

ChatGPT, a chatbot renowned for generating human-like responses based on user input, has played a pivotal role in boosting the popularity of AI. The AI industry is currently regarded as the next frontier in technology and has become the latest buzzword in Silicon Valley.

If this arrangement is formalised, it would represent the second significant secondary share sale for the high-profile San Francisco-based startup, marking a remarkable ascent in its valuation. Earlier this year, OpenAI conducted a share sale worth $300 million, valuing the company at $30 billion.

Notably, established startups like SpaceX have engaged in routine private share sales without resorting to going public, allowing employees and current investors to capitalize on the increasing worth of their equity in the company. In a sale of existing shares, no fresh capital is injected into the company.

Social media has been abuzz since the news broke out. Here are some reactions from X (formerly Twitter):

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