Yahoo Finance Live's Seana Smith and Dave Briggs examinne ChatGPT parent company OpenAI's latest valuation amid negotiations to sell its existing shares and how students are using the program.

Video Transcript

DAVE BRIGGS: Open AI, the creator of Chat GPT, is reportedly considering a tender offer that would value the company at $29 billion. This news has garnered significant attention in the tech industry, as it reflects the growing importance and potential of artificial intelligence in today's market.

Open AI's research and development in the field of AI have earned it a reputation as a leader in the industry. And this valuation serves as a testament to the company's innovative work and potential for growth in the future. Guess who wrote that? Not me, not my producers, not Seana-- Chat GPT itself. Not bad, Chat GPT.

SEANA SMITH: Not bad.

DAVE BRIGGS: Not bad.

SEANA SMITH: Very impressive that the technology was able to do that. The one thing I will say is that it's a little bit-- it's much more boring, to put it plain here, than what you typically write, than what humans typically write, just in terms of the emotion, the feeling that goes into writing right now, the variation. You don't necessarily see that, I don't think, reflected in that script. You read it well, though. You disagree with me.

DAVE BRIGGS: I juiced it up a little bit, but serves as a testament. I thought it was solid. I thought it was solid--

SEANA SMITH: Solid.

DAVE BRIGGS: --B+ work.

SEANA SMITH: Definitely solid. And I'll give it a B+. I might even give it an A-. But I do think--

DAVE BRIGGS: And what about the valuation?

SEANA SMITH: That valuation, $29 billion valuation certainly a massive bet, I think, on the future of this company when you take into account what it's done while Chat GPT, the technology here, extremely impressive. Reuters had reported last month that the company only expected to make $80 million in revenue last year in 2022. So $29 billion valuation really speaks to the potential adoption of this and what the future could look like when incorporating this type of technology.

DAVE BRIGGS: Yeah, I'm really curious what the monetizing element of this is. I didn't pay any money to use this. My kids who have used it quite often, they aren't paying any money. We know they've talked about incorporating it in Bing as search. That's a pipe dream at best. Anybody competing with that Google space just doesn't look, quite frankly, likely at all. A lot of the students who are using it, they are not paying for it.

And that is an interesting aspect to watch because New York City public schools have now banned Chat GPT, not just among students, but among the teachers as well. Now that doesn't mean you can't use it at home. You can only not use it when you're on their Wi-Fi or on their networks. You might be on their school issued laptops, for instance.

SEANA SMITH: Yeah, and speaking of schools moving to ban it, I think the big question here is how you regulate it, how you keep students from using this to cheat. And it was pretty interesting. There's actually a student from Princeton. There's a computer science student there at the university. He has built an app. It's called GPT 0.

And he's saying that it can, quote, "quickly and efficiently" label whether an essay was written by a person or whether it was written by Chat GPT. It affects-- the reason that we're-- or I guess the ability here to determine that is the variation that they use, or lack thereof, that's included in what Chat GPT writes. I'm just so impressed that someone has already built an app that could potentially detect this in such a short amount of time because, remember, this was only launched, what, the end of November?

DAVE BRIGGS: Yeah.

SEANA SMITH: Just over a month ago.

DAVE BRIGGS: It is moving at light speed. Impressive. We shall see where it's headed.