OpenAI, the Microsoft-backed AI giant behind ChatGPT, is reportedly in early discussions over a potential stock sale that could allow employees to cash out while valuing the company at around $500 billion. The deal would almost double OpenAI’s current $300 billion valuation, reflecting its rapid growth and positioning it as one of the most valuable private tech companies in the world.
From $300B to $500B in record time
OpenAI’s valuation jump highlights the extraordinary demand for cutting-edge AI technology and the fierce competition to secure top talent in the sector. The company’s flagship product, ChatGPT, has been a major growth driver. In just seven months, OpenAI doubled its revenue, reaching an annualised run rate of $12 billion and setting its sights on $20 billion by year-end.
The user base for ChatGPT has also seen explosive growth. Weekly active users have surged to about 700 million, up from 400 million in February, indicating broad adoption across industries and geographies. This rapid expansion has intensified investor interest and helped set the stage for the proposed valuation leap.
SoftBank’s mega funding commitment
The secondary share sale discussions follow OpenAI’s earlier announcement of a $40 billion primary funding round led by Japan’s SoftBank Group. SoftBank has until the end of the year to contribute its $22.5 billion portion, while the remaining funds have already been subscribed at the $300 billion valuation.
This massive funding push underscores the appetite among global investors for exposure to the AI sector, particularly in companies seen as market leaders. Other prominent backers, such as Thrive Capital, are reportedly in talks to participate in the employee share sale as well.
Racing ahead of SpaceX
If the $500 billion valuation materialises, OpenAI would overtake Elon Musk’s SpaceX, currently valued at around $400 billion, as the world’s most valuable privately held tech company. Such a milestone would further cement its influence in the fast-moving AI race and increase pressure on rivals to match its pace of innovation.
Tech giants are already battling for AI talent, offering attractive compensation packages to lure top engineers and researchers. Meta, for example, is reportedly investing billions in Scale AI with the aim of recruiting its young CEO Alexandr Wang to lead a new super intelligence unit.
A step toward an IPO
While OpenAI has not committed to going public, the company is working on a major corporate restructuring to move away from its current capped-profit model. This shift would pave the way for an eventual IPO, though CFO Sarah Friar has stated that such a move will only happen when both the company and market conditions are ready.
The proposed secondary sale could be larger than the $1.5 billion employee stock sale conducted late last year. These transactions often serve as a precursor to a public offering, enabling the company to gauge investor appetite and reward employees without taking the leap to public markets immediately.
Opening up with new AI models
Alongside the share sale news, OpenAI has also released its first open AI models since ChatGPT’s debut. The two new systems, gpt-oss-120b and gpt-oss-20b are designed for developers to run locally and customise. While they are not fully open-source, they represent a more transparent alternative to the company’s fully closed systems.
According to CEO Sam Altman, the models match the real-world reasoning performance of some of OpenAI’s smaller commercial products and can run even on personal devices, depending on size. “gpt-oss is a big deal,” OpenAI CEO Sam Altman posted on X.
The release was delayed twice to allow for additional safety testing. OpenAI conducted internal trials using adversarial versions of the models to simulate potential misuse, including biosecurity risks, and shared findings with external experts for review.
Setting the pace in the AI race
The combination of skyrocketing revenues, a massive user base, and ambitious fundraising has propelled OpenAI into a league of its own in the private tech world. By simultaneously expanding its product portfolio and considering one of the largest private valuations in history, the company is signalling that it intends to remain at the forefront of the AI revolution.
Whether the $500 billion figure becomes reality will depend on investor negotiations over the coming months. But even the possibility of such a valuation reflects a market that continues to bet heavily on AI’s potential to reshape industries and on OpenAI’s ability to lead that transformation.
