OpenAI Valued at $90B, Eyes Middle East Investors for Share Sale

ChatGPT parent OpenAI is close to selling shares in a deal that values the company at $90 billion.

However, completing the offer could depend on deep-pocketed investors from the Middle East, the New York Post reports.

The proposed share sale will enable OpenAI’s employees to offload their existing shares instead of requiring OpenAI to issue new shares to attract additional capital. Representatives from OpenAI have reportedly begun pitching the deal to investors.

Also Read: ChatGPT Parent OpenAI Aims At Budget-Friendly AI Innovations To Bring Down Costs

The artificial intelligence firm co-founded by Sam Altman and 49% owned by Microsoft Corp MSFT is in talks to help its employees cash out of tens of millions of dollars worth of private stock in a tender offer that’s likely to close October 21.

Despite much overseas demand, including some from The Gulf, the outlook for other such expensive tech deals looks murky as U.S. investors appear to be withdrawing at OpenAI’s price tag. 

Additionally, the terrorist attacks in Israel and the Saudis remaining mum about the conflict could complicate new fundraising from sovereign wealth funds across the Persian Gulf.

While some weigh the optics of a fundraising trip to the Middle East, others feel the lack of options in the U.S. given the lackluster economic conditions.