AI giant Openai targeting $500 billion valuation through potential employee stock sale, report claims
OpenAI, the innovative company behind the popular AI model ChatGPT, is in the early stages of discussions for a secondary stock sale. This sale, if successful, could value the company at approximately $500 billion[1][2][3].
The proposed transaction is led by an existing investor, Thrive Capital, and could involve several billion dollars in stock[1]. This secondary stock sale is designed to provide a financial incentive to OpenAI's employees, offering them an opportunity to cash out their shares.
The elevated valuation of $500 billion is a significant increase from the previous $300 billion figure. This increase is attributed to OpenAI's impressive revenue growth and user base expansion. In the first half of 2025, OpenAI's annualized revenue more than doubled, reaching $12 billion by July, and projected to hit $20 billion by year-end[1]. Furthermore, the user base for its core product, ChatGPT, expanded from 400 million to about 700 million weekly active users within those months[1].
The secondary stock sale follows a $40 billion funding round led by SoftBank Group, which is contributing $22.5 billion by year-end[1]. In addition, the recent $8.3 billion raised in the second tranche of that round further solidifies investor confidence and underpins the valuation jump[1].
It is worth noting that this secondary stock sale is happening ahead of a potential initial public offering (IPO). By providing liquidity to employees and possibly resetting valuation benchmarks before going public, OpenAI aims to boost its market value strategically[1][2]. If completed, the transaction would increase OpenAI's on-paper market value by roughly two-thirds compared to previous estimates[2].
The exact details of the stock sale, including the number of shares to be sold and the price per share, have not been disclosed. It is also not clear if other investors apart from Thrive Capital will participate in the stock sale[1][2]. Thrive Capital, one of the existing investors in discussions to participate in the stock sale, has declined to comment[1].
This move signals strong investor confidence and could significantly impact OpenAI’s market perception and capital structure going forward[1][2][3]. In the competitive landscape of AI research, with technology giants like Meta reportedly offering lucrative compensation packages to attract top talent, this development underscores OpenAI's position as a major player in the field[1].
[1] Bloomberg News [2] The Wall Street Journal [3] TechCrunch
- The financial transaction, known as a secondary stock sale, led by Thrive Capital, could involve several billion dollars in stock and potentially value OpenAI at approximately $500 billion.
- The revenue growth and user base expansion of OpenAI's core product, ChatGPT, have contributed to the increased valuation of $500 billion, with the user base expanding from 400 million to about 700 million weekly active users.
- The secondary stock sale is designed to provide a financial incentive to OpenAI's employees, offering them an opportunity to cash out their shares, and is happening ahead of a potential initial public offering (IPO).
- By providing liquidity to employees and possibly resetting valuation benchmarks before going public, OpenAI aims to boost its market value strategically, which could significantly impact its market perception and capital structure, signaling strong investor confidence in the technology company.
