OpenAI, the AI powerhouse behind innovations like ChatGPT, has recently completed a significant deal, catapulting its valuation to $80 billion, according to the New York Times. This development, backed by Microsoft, underscores the booming interest and investment in artificial intelligence technologies.

In this latest transaction, OpenAI opted for a tender offer approach, led by Thrive Capital, allowing employees to liquidate their shares. This method stands in contrast to a traditional funding round, which typically aims to inject fresh capital into the company for growth and expansion.

The deal not only benefits employees by providing them with an opportunity for financial gain but also reflects the company’s robust valuation growth, from a previous valuation of around $29 billion in an early tender offer that included prominent venture capital firms like Thrive Capital, Sequoia Capital, Andreessen Horowitz, and K2 Global.

The surge in OpenAI’s valuation and the strategic financial moves come in the wake of the launch of ChatGPT in late 2022, which has significantly fueled the AI hype and led various companies to seek ways to leverage AI technology.

Furthermore, OpenAI’s CEO, Sam Altman, is reportedly seeking funds for a chip venture aimed at increasing global chip production capacity, a move that is poised to further accelerate the development and deployment of new AI tools and technologies.