SAN FRANCISCO – Current and former employees of OpenAI are in talks to sell nearly $6 billion worth of shares in the ChatGPT maker to investors, including SoftBank Group and Thrive Capital, according to a source familiar with the matter. The proposed deal would value the artificial intelligence (AI) giant at $500 billion—a significant jump from its current $300 billion valuation—highlighting OpenAI’s explosive growth and fierce competition in the AI sector.
Key Details of the Deal
-
Investors Involved: SoftBank, Thrive Capital, and Dragoneer Investment Group—all existing backers of OpenAI—are in discussions, though the deal remains in early stages and terms may shift.
-
Secondary Share Sale: The transaction would allow employees to cash out while adding to SoftBank’s involvement, following its lead role in OpenAI’s recent $40 billion primary funding round.
-
Revenue Surge: OpenAI’s annualized revenue run rate hit $12 billion in the first seven months of 2024, doubling from last year, with projections to reach $20 billion by year-end.
-
User Growth: ChatGPT now boasts 700 million weekly active users, up from 400 million in February, driven by its dominance in generative AI.
The deal underscores OpenAI’s meteoric rise as a leader in AI, fueled by ChatGPT’s global adoption. The soaring valuation reflects investor confidence despite intensifying competition from rivals like Google DeepMind, Anthropic, and Elon Musk’s xAI.
Microsoft, OpenAI’s largest backer, continues to benefit from the partnership, integrating AI across its products. However, regulatory scrutiny over AI’s rapid expansion remains a looming challenge.
