"Current and former OpenAI employees sold $6.6 billion in shares to a group of investors, pushing the privately held artificial intelligence company's valuation to $500 billion, according to a source with knowledge of the deal who was not authorized to discuss it publicly. The investors buying the shares included Thrive Capital, Dragoneer Investment Group and T. Rowe Price, along with Japanese tech giant SoftBank and the United Arab Emirates' MGX, the source said Thursday."
"OpenAI CEO Sam Altman has sought to dismiss those concerns, most recently last week, when he toured a massive data center complex being built to run the company's AI systems in Abilene, Texas. "Between the ten years we've already been operating and the many decades ahead of us, there will be booms and busts," Altman said after being asked about a bubble. "People will overinvest and lose money, and underinvest and lose a lot of revenue.""
OpenAI's valuation rose to $500 billion after current and former employees sold $6.6 billion in shares to investors including Thrive Capital, Dragoneer, T. Rowe Price, SoftBank and UAE-based MGX. The valuation places OpenAI ahead of SpaceX and ByteDance among private startups and reflects strong investor expectations for generative AI. The San Francisco-based company has not yet turned a profit, raising concerns about a potential AI investment bubble if products fail to meet expectations. CEO Sam Altman acknowledged possible short-term booms and busts while expressing confidence in long-term economic, scientific and creative benefits from the technology.
Read at The Mercury News
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