OpenAI shares sold for $300M to VCs at a valuation of $27B-29B

A $300 million share sale has been closed by OpenAI, the company behind ChatGPT. The company is valued between $27 billion and $29 billion, according to a report.

Tiger International, Sequoia Capital, Andreessen Horowitz (A16Z), Thrive and K2 International have taken up new shares. The investment follows Microsoft's $10 billion investment earlier this year. While Microsoft's investment has a strong strategic angle as it aims to integrate OpenAI's technology across its enterprise, the VC share purchases are purely monetary in nature.

Sources told Techcrunch that external investors now hold more than 30 percent of OpenAI.

It can't be denied that generative AI is a rage at the moment, despite the controversy surrounding the authenticity, integrity, and security of its responses. The growth potential for this area of technology is still nascent.