OpenAI Valuation Soars to $500B in Employee Share Sale
OpenAI Eyes $500 Billion Valuation in Share Sale
OpenAI is reportedly in discussions for a new employee share sale that could value the company at $500 billion, according to a report in The New York Times.
The potential transaction would involve current and former OpenAI employees selling approximately $6 billion in stock to a group of investors including SoftBank, Thrive Capital, and Dragoneer Investment Group. This secondary sale allows employees to liquidate equity without requiring an IPO.
Key Takeaways:
- $6B in shares may be sold by OpenAI staff to SoftBank, Thrive, and Dragoneer.
- If successful, this would value OpenAI at $500 billion.
- The move could position the ChatGPT maker as the most valuable privately held company, surpassing SpaceX.
- Secondary sale discussions follow a $40B SoftBank-led funding round that previously valued OpenAI at $300B.
Valuation Surpasses SpaceX
At a $500 billion valuation, OpenAI would exceed SpaceX to become the most valuable privately held company, as per CB Insights. The AI firm's valuation has seen rapid growth, increasing from $157 billion in October to $300 billion in March.
Revenue Projections and Funding
The funding round in March, primarily led by SoftBank, committed $40 billion, with a possible $30 billion to be delivered before the end of the year. Bloomberg reports that OpenAI anticipates a threefold revenue increase in 2025 to $12.7 billion, driven by the launch of its new GPT-5 model.