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OpenAI's $500B Valuation Sparks Profit Shift, Microsoft Tension

OpenAI's massive valuation shift could reshape its partnership with Microsoft. Analysts question the feasibility of its ambitious projects and warn of an AI investment bubble.

There is a poster in which there is a robot, there are animated persons who are operating the...
There is a poster in which there is a robot, there are animated persons who are operating the robot, there are artificial birds flying in the air, there are planets, there is ground, there are stars in the sky, there is watermark, there are numbers and texts.

OpenAI's $500B Valuation Sparks Profit Shift, Microsoft Tension

OpenAI, the creator of ChatGPT, is set to transform from a non-profit foundation to a profit-oriented company. This shift, valued at half a trillion dollars, may spark disputes with its partner Microsoft. The company's valuation has skyrocketed by 200 billion dollars since April.

OpenAI's recent success has drawn attention and concern from analysts. They question the feasibility of its ambitious projects and warn of an AI investment bubble. Tech CEOs, including Marc Zuckerberg and OpenAI's CEO Sam Altman, have discussed this possibility.

The company's shares, worth about $6.6 billion, were recently sold to investors like Thrive Capital and SoftBank. This deal was approved by OpenAI and involved current and former employees. Despite these concerns, OpenAI has secured massive deals with tech giants like Nvidia and Oracle, involving hundreds of billions of dollars.

OpenAI's transformation into a profit-oriented company could alter Microsoft's involvement in its revenues and API use. With a valuation of half a trillion dollars, it's now the most valuable non-listed company, surpassing SpaceX. However, analysts' doubts about its projects and the potential AI investment bubble remain a topic of discussion.

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