Decoding OpenAI's Meteoric Rise: Valuation Insights

Published On Fri Oct 04 2024
Decoding OpenAI's Meteoric Rise: Valuation Insights

How much will OpenAI be valued in its next funding round? | Manifold

OpenAI has a history of raising capital from investors, and its valuation has consistently increased with each successive funding round. According to 33rd Square, the company's valuations have progressed as follows:

  • In 2019, OpenAI received $1 billion from Microsoft, resulting in a valuation of approximately $1 billion.
  • In 2021, the company's valuation had surged to $14 billion during another funding round.
  • In 2022, OpenAI reached a valuation of $20 billion based on an internal assessment.
  • In October 2023, estimates suggest that OpenAI's valuation ranges from $29 billion to $32 billion.

In October 2023, The Financial Times reported that OpenAI was planning another stock sale with a target valuation of $86 billion. However, following a recent leadership transition at the company, there are speculations surrounding the viability of this stock sale.

If OpenAI undergoes a new funding round by the end of 2025, the resolution to the question regarding its valuation will be based on the implied valuation of that round:

For instance, if a new funding round values OpenAI at $40 billion, the resolution would fall within the "$40 billion to $80 billion" range. Similarly, a $10 billion valuation would resolve to "$10 billion to $20 billion".

If OpenAI does not secure any new capital by the end of 2025, the resolution will simply state "No new capital raised until the end of 2025".

Based on a Bloomberg article, the question has been resolved to a confirmed valuation of $86 billion ($80 billion to $160 billion).

For additional information, you can refer to this article: https://finance.yahoo.com/news/openai-tender-employee-shares-extended-180824501.html

OpenAI in talks to sell shares at $86 billion valuation

In 2024, OpenAI has finalized a deal that lets employees sell their shares valuing the company at $86 billion.