OpenAI, creator of ChatGPT, aims for $29 billion valuation in fundraising efforts

OpenAI, the artificial intelligence company behind the viral ChatGPT chatbot programme, is reportedly considering selling its shares at a valuation of $29 billion, according to reports. This highly bullish valuation is based on the company's future ability to create revolutionary products that can generate profits.

Previously, the company expected to make around $80 million in revenue for 2022. OpenAI has also told investors that it expects to increase its annual revenue to $1 billion by 2024.

ChatGPT was launched on November 30th and gained popularity for its ability to mimic human conversation and provide detailed responses to user prompts. Within a week of its launch, the interface had signed up one million users, who are able to use it for free during the "research preview" phase.

Microsoft invested $1 billion in OpenAI in 2019 and is hoping to integrate ChatGPT software with its Bing search engine in order to drive traffic away from Google, according to reports. Microsoft is reportedly in talks to increase its investment stake in the company.

Although ChatGPT has faced some issues, such as giving incorrect answers and repeating similar phrases, it has proven more successful than earlier programmes launched by big tech firms, such as Meta's BlenderBot 3, which was released in August but quickly adopted racist and antisemitic language.