OpenAI, the creator of ChatGPT, is engaged in early-stage discussions about a potential stock sale that would enable employees to cash out shares. This transaction could value the company at around $500 billion, a significant increase from its current $300 billion valuation. The move highlights OpenAI’s rapid growth in both users and revenue, as well as the fierce competition within the AI industry to attract and retain top talent.
The proposed stock sale, expected to occur before a possible initial public offering (IPO), would allow current and former employees to sell several billion dollars in shares. OpenAI’s revenue has doubled in the first seven months of this year, reaching an annualized run rate of $12 billion, with projections to hit $20 billion by year-end. The company’s ChatGPT platform has surged to about 700 million weekly active users, nearly doubling its user base since February.
This potential sale follows OpenAI’s major funding round earlier in the year, which seeks to raise $40 billion and is led by Japan’s SoftBank Group. SoftBank has until year-end to complete its $22.5 billion commitment, while other investors have already subscribed at a valuation of $300 billion. ChatGPT’s rapid rise has intensified competition for AI talent, with companies such as Meta investing billions to recruit key leaders in the space.
OpenAI is also working on a major corporate restructuring to transition away from its capped-profit model, paving the way for a future IPO. CFO Sarah Friar has emphasized that any public offering will happen only when the company and market conditions are favorable. Existing investors like Thrive Capital are reportedly considering participating in the employee share sale, underscoring confidence in OpenAI’s continued growth and market leadership.