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Sunday, May 28, 2023

Tiger Global, others boost ChatGPT share in OpenAI’s $300M stock sale

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According to a report, OpenAI, the research lab behind AI chatbot, ChatGPT, has completed a share sale of $300 million. The sale was closed at a valuation of $27 billion to $29 billion. According to official filings, venture capital funds such as Tiger Global, Sequoia Capital, Andreessen Horowitz, Thrive, and K2 Global have acquired fresh shares.

OpenAI revealed in January that it had received investment from Microsoft. The financial parameters of the acquisition were not disclosed by either company, although media sources stated that Microsoft spent $10 billion in the venture.Microsoft has previously made a $3 billion investment in OpenAI.

ChatGPT and other generative AI systems have made quite a stir in the tech industry and beyond. They employ enormous pools of internet data such as digital books, blog posts, and other media to generate text, graphics, and other content that mimics human labour.

A group of entrepreneurs and artificial intelligence researchers founded the startup n 2015.  The founding group included Sam Altman, former president of Silicon Valley startup incubator Y Combinator, prominent researher Ilya Sutskever, and Twitter owner Elon Musk.

They established the lab as a charitable organization.  However, after Musk left the venture in 2018, Altman reformed OpenAI as a for-profit company in order to raise the funds required for its research.

The introduction of GPT-4, last month, OpenAI released GPT-4, the most powerful version of its hugely popular chatbot ChatGPT.According to Altman, OpenAI’s CRO, GPT-4 is the company’s most competent and aligned model to yet. Soon after the introduction, four artificial intelligence professionals highlighted their worries and demanded an immediate halt to study.

The open letter, which was published on the website of Musk’s Future of Life Institute, called for a six-month time limit on the creation of systems “more powerful” than Microsoft-backed OpenAI’s latest GPT-4. Civil society organizations throughout the world have raised similar concerns and urged governments to restrict the development of artificial intelligence.

Since its debut last year, OpenAI’s ChatGPT has pushed competitors, including IT behemoths Microsoft and Google, to hasten the creation of comparable massive language models, and businesses to incorporate generative AI models into their products.

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