Reports indicate that OpenAI is discussing a stock sale that could raise its market valuation to $500 billion.
OpenAI, the creator of ChatGPT, is reportedly in negotiations with investors regarding a stock sale that could value the company at $500 billion, as per a Bloomberg report on Tuesday. This transaction would allow employees to sell their shares and could establish the company as the globe’s most valuable private tech enterprise, surpassing Elon Musk’s SpaceX, currently valued at $400 billion.
These discussions are said to be in their nascent phase; however, a source indicated that all existing OpenAI investors, including the New York-based firm Thrive Capital, are involved. Since OpenAI is not a publicly traded entity, this sale would enable current and former employees to sell their shares directly to investors. The ultimate valuation will be contingent on market demand.
Sources stated that OpenAI seeks to leverage robust investor interest to provide staff an opportunity to liquidate shares and profit from the company’s expansion. This report follows OpenAI’s recent $40 billion funding round, spearheaded by Japan’s SoftBank, which had valued the company at $300 billion. Last week, the firm secured $8.3 billion from that round, with demand reportedly five times greater than the available shares. Sources further indicated that this strong investor interest suggests the new share sale could be considerably larger than the $1.5 billion transaction OpenAI completed late last year.
Both OpenAI and Thrive Capital chose not to comment on the matter.
This potential sale occurs amidst a significant boom in artificial intelligence, with substantial investor capital flowing into leading companies. Public disclosures indicate that Meta, Microsoft, Amazon, and Alphabet have collectively spent tens of billions on AI this year and intend to invest over $400 billion by 2026. Experts suggest that expenditures could rise even further under former US President Donald Trump’s ‘Big Beautiful Bill,’ which proposes tax incentives for companies that frontload investments, thereby freeing up funds for AI projects.
Prominent US startups commonly permit employees to sell shares as a method of compensation, retention, and a means to attract fresh investment. OpenAI, while a highly influential participant in AI research, is contending with intense competition. Since the debut of ChatGPT in late 2022, its annual subscription revenue has surged to $12 billion, whereas its competitor Anthropic has quadrupled its revenue this year to $4 billion.
To maintain its competitive edge, OpenAI this week introduced new “open weight” models, offering developers the freedom to customize them. The company is also preparing for the highly anticipated launch of its GPT-5 model later this month.