Finance

ChatGPT’s Potential Value estimated at $29 Billion as Investors Talk About Possible IPO

ChatGPT’s Potential Value estimated at $29 Billion as Investors Talk About Possible IPO
Tuesday, 02 May 2023 17:54

Amid speculation about an IPO, the potential value of ChatGPT, the collaborative AI language tool developed by OpenAI, is estimated at $29 billion. According to several unofficial reports, the advanced language model could attract investors and achieve high valuations.

Investors have already acquired some of ChatGPT's shares for $300 million, which has led to valuations ranging from $27 billion to $29 billion. As the tool continues to be adopted by professionals and individuals, investors are already assessing its potential value if it were to go public.

Built on the GPT-4 architecture, ChatGPT has become a dominant player in the AI landscape, offering users capabilities in natural language processing and understanding. Since its creation, ChatGPT has disrupted various sectors, including content creation, customer service, and language translation, to name a few. Its widespread adoption has generated increasing interest in the commercial prospects of OpenAI.

In addition to its growing necessity, OpenAI has already formed partnerships with major companies such as Microsoft, Google, and Amazon, thereby strengthening its position in the market. However, it is difficult to predict the final value of the company. While Alphabet (Google) has become one of the world's most valuable companies, Zoom Video Communications, which revolutionized remote work during the COVID-19 pandemic, is currently trading at $61.2, a price lower than its IPO value (just over $62) after reaching a record high of $559 in November 2020.

ChatGPT is impressive, but still faces some challenges. Partnerships with Microsoft and Google have put it in competition with these two major players in digital communication, who have launched their own AI dialogue platforms. In some countries, the platform also faces regulatory constraints, particularly regarding privacy concerns.

Finally, although the responses provided by the platform are constantly improving, they can sometimes be confusing for inexperienced users. Meanwhile, in a December article, Reuters added to the speculation, stating that according to people its journalists spoke with, OpenAI could generate revenues estimated at $200 million in 2023 and $1 billion in 2024.

On the same topic
Republic of Congo raises $670M through Eurobond issue after 20-year absence Proceeds to refinance short-term debt; 2032 bond priced at...
EIB invests €20M in fund aiding EU SMEs' Africa expansion Amethis fund targets growth sectors to build EU-Africa business ties Investment...
COBAC raises bank capital requirement to 25 billion CFA francs from 10 billion Compliance deadline extended to 2029 as most banks face...
(YMO)-YMO, the Guinean fintech with global reach, abolishes all transfer and withdrawal fees to Guinea. A historic first for the remittance sector,...
Most Read
01

Tunisia to launch first fully digital hospital as part of health reform. Project includes AI diag...

Tunisia to Build First Fully Digital Hospital in National Health Overhaul
02

Lukoil to sell all international assets to Gunvor amid U.S. sanctions Sale includes key oil stake...

Lukoil Agrees to Sell International Assets, African Included, to Swiss Commodities Trader Gunvor
03

With COP30 approaching, the International Renewable Energy Agency is calling for a global goal: to q...

With Costs High, IRENA Urges Global Pact to Quadruple Sustainable Fuel Production
04

Indian bottler VBL signs exclusive deal to test Carlsberg sales in Africa Move aims to diversify ...

Varun Beverages partners with Carlsberg to enter Africa’s beer market
05

Annual consumer-price inflation slowed to 11.9 % in October, the weakest reading since April,...

Zambia’s Inflation Retreat Extends to Six Months as Policy Mix Gains Traction
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.