OpenAI is in early talks to conduct a share sale that could value the artificial intelligence company at around $500 billion, according to a source familiar with the matter. The move would mark a dramatic increase from its current $300 billion valuation and allow current and former employees to sell billions of dollars in shares. The discussions come as OpenAI continues to experience rapid growth, driven by the success of its ChatGPT platform, which now boasts 700 million weekly active users—up from 400 million in February.
The potential share sale would precede a future initial public offering (IPO) and follows OpenAI’s recent push to raise $40 billion in funding, led by Japan’s SoftBank Group. While SoftBank has until year-end to commit $22.5 billion to the round, the remaining portion has already been secured at the $300 billion valuation. OpenAI’s revenue has doubled in the first seven months of 2024, reaching an annualized run rate of $12 billion, with projections suggesting it could hit $20 billion by December.
The proposed transaction highlights the fierce competition among tech firms to attract and retain top AI talent. Companies like Meta are making multi-billion-dollar investments to recruit key executives, such as Scale AI’s 28-year-old CEO Alexandr Wang, to lead new AI initiatives. Other private firms, including ByteDance and Databricks, have similarly used secondary share sales to update valuations and reward employees. OpenAI’s existing investors, including Thrive Capital, are reportedly in discussions to participate in the employee share sale.
OpenAI is also undergoing a major corporate restructuring, moving away from its capped-profit model to pave the way for a potential IPO. The shift reflects the company’s evolution from a research-focused entity to a commercially dominant force in AI. As the industry races to capitalize on generative AI, OpenAI’s soaring valuation underscores its leading position—though regulatory and competitive challenges remain. Bloomberg first reported the potential share sale, while Thrive Capital declined to comment.
