Microsoft Has A Near-Term Opportunity To Acquire OpenAI At A Favorable Valuation.
Now that OpenAI co-founders Sam Altman and Greg Brockman are Microsoft employees, OpenAI’s valuation is less than half of what it was last week in my view. The rumor was that OpenAI in recent weeks was considering an equity round at an $86 billion valuation (on approximately $1.3 billion in 2023 revenue, which is outrageously high). Without Altman and Brockman, what is OpenAI worth? With every OpenAI employee that joins Microsoft, OpenAI is worth less and less. What is a rudderless, hollowed-out OpenAI worth? Essentially, what would Microsoft (MSFT) be willing to pay for OpenAI’s Intellectual Property?