OpenAI, a San Francisco-based startup behind an AI-powered chatbot, has recently finalized a tender offer that allows some of its employees to cash out their ownership. This move can be seen as a reward for the eight-year-old firm’s workforce because advances in AI technology are heating up competition for talented professionals. In addition, the discussions for raising billions of dollars from Microsoft last year put OpenAI in the limelight. According to sources with direct knowledge of the situation, the offer values OpenAI at a roughly estimated $27 billion. The size of the deal is currently unknown.
OpenAI was founded in 2015 by the two-time winners of a prestigious AI award and boasts a staff of 400 employees. As a startup, OpenAI specializes in generative AI, which involves large machine-learning models that can produce results like human writing methods, images, and codes. With the surge in demand for AI talent, OpenAI’s move is welcome news in the industry.
OpenAI’s founding team is lead by Sam Altman, who serves as its president. He is an experienced entrepreneur who previously co-founded Y Combinator, a popular startup accelerator program. Sam comes from the world of venture capital and is the author of “We Have the Tools to Win the War Against A.I.” Altman has also been a vocal advocate of AI and production software, sharing his views during a TED Talk in 2017.
In addition to Sam Altman, OpenAI has on its board many influential figures including Tesla and SpaceX founder Elon Musk. With open talent wars in the AI realm heating up, OpenAI’s move to reward its employees with a lucrative tender offer stands out as a positive development for the field.
