OpenAI's Unprecedented $500 Billion Valuation: A New Era in AI Investment

OpenAI Is Poised To Become The Most Valuable Startup Ever. Should It Be?

OpenAI is reportedly on the verge of a roughly $500 billion valuation, a figure that would make it the most valuable private company in the world -- bigger than SpaceX, TikTok's parent company Bytedance, and even public giants like Palantir. It's a staggering number for a company with an "astronomical burn rate." How is this even possible? As Axios reports, there are actually two deals in play: a SoftBank-led round valuing the company at $300 billion, which won't close until year's end, and a secondary sale of employee shares at a far steeper $500 billion valuation. Most of the cheaper shares have already been snapped up, leaving investors to fight over the pricier ones. One OpenAI investor -- who spoke on the condition of anonymity, citing an NDA -- compared it to the dawn of the internet. "We're in one of the biggest technology shifts [in history]," the investor tells me. "The outcomes continue to get bigger than people think." The investor argues the math for investing at the $500 billion valuation is straightforward: Hypothetically, if ChatGPT hits two billion users and monetizes at $5 per user per month -- "half the rate of things like Google or Facebook" -- that's $120 billion in annual revenue. "That alone would support a trillion and a half dollar company, which is a pretty good return, just thinking about ChatGPT," the investor says. "it doesn't include all the rest of stuff they're working on, all the enterprise stuff, all the agentic stuff, all of the work they're doing on hardware." The $5 figure is, admittedly, back of the envelope math. Today, ChatGPT has 700 million weekly active users -- and fewer than 10 percent pay (OpenAI declined to comment on this figure). The investor's projections are ambitious, and seem to discount the threat of major players like Google and Meta eating OpenAI's lunch. "The half a trillion dollar question now is, to what extent will OpenAI be able to retain the customers that it has acquired, and simultaneously be able to bring its costs to a point where it can, in fact, monetize at [hypothetically] $5 per user per month," says Arun Sundararajan, a professor at New York University's Stern School of Business. The bet here is that OpenAI is the next Facebook or Google. For investors buying in at $500 billion, "they're expecting an IPO above a trillion in two to three years, otherwise the rate of return does not justify the investment," says Glenn Okun, who's also a business professor at NYU. That would mean leaping into the top ten most valuable public companies in the world almost overnight. The investor says they have a longer time horizon than that, but "of course an IPO is the most sensible path given the scale of the company." Though the investor admits, yes, the company would need to be valued at more than $1 trillion to make the investment worthwhile. Stranger things have happened -- particularly to OpenAI. In the first seven months of 2025, the company doubled its projected annual revenue to $12 billion, which would estimate OpenAI is bringing in about $1 billion per month. Enterprise adoption has surged too, reaching 5 million paying business users this month. Not to mention what potential advertising revenue could do to its bottom line. To the investor, these are signs of a company with the momentum to win: "People don't like unprecedented things, because most people like to pattern match," the investor says. "Everything this company has done has been unprecedented from the pace of its revenue growth to the AI technology."

OpenAI staff looking to sell $6 billion in stock to SoftBank, others, source says

Aug 15 (Reuters) - Current and former employees of OpenAI are looking to sell nearly $6 billion worth of the ChatGPT maker's shares to investors including SoftBank Group (9984.T), opens new tab and Thrive Capital, a source familiar with the matter told Reuters on Friday. The potential deal would value the company at $500 billion, up from $300 billion currently, underscoring both OpenAI's rapid gains in users and revenue, as well as the intense competition among artificial intelligence firms for talent. SoftBank, Thrive and Dragoneer Investment Group did not immediately respond to requests for comment. All three investment firms are existing OpenAI investors. Bloomberg News, which had earlier reported the development, said discussions are in early stages and the size of the sale could change. The secondary share sale investment adds to SoftBank's role in leading OpenAI's $40 billion primary funding round. Bolstered by its flagship product ChatGPT, OpenAI doubled its revenue in the first seven months of the year, reaching an annualized run rate of $12 billion, and is on track to reach $20 billion by the end of the year, Reuters reported earlier in August. Microsoft-backed (MSFT.O), opens new tab OpenAI has about 700 million weekly active users for its ChatGPT products, a surge from about 400 million in February. Reporting by Juby Babu in Mexico City; Editing by Shreya Biswas and Sriraj Kalluvila Our Standards: The Thomson Reuters Trust Principles., opens new tab

OpenAI in talks to sell around $6 billion in stock at roughly $500 billion valuation

Sam Altman, CEO of OpenAI attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, U.S., on July 8, 2025. OpenAI is preparing to sell around $6 billion in stock as part of a secondary sale that would value the company at roughly $500 billion, CNBC confirmed Friday. The shares would be sold by current and former employees to investors including SoftBank, Dragoneer Investment Group and Thrive Capital, according to a person familiar with the negotiations who asked not to be named due to the confidential nature of the discussions. The talks are still in early stages and the details could change. Bloomberg was first to report the discussions. All three firms are existing investors in OpenAI, but Thrive Capital could lead the round, as CNBC previously reported. SoftBank, Dragoneer and Thrive Capital did not immediately respond to CNBC's request for comment. OpenAI's valuation has grown exponentially since the artificial intelligence startup launched its generative AI chatbot ChatGPT in late 2022. The company announced a $40 billion funding round in March at a $300 billion, by far the largest amount ever raised by a private tech company. Earlier this month, OpenAI announced its most recent $8.3 billion in fresh capital tied to that funding round. Last week, OpenAI announced GPT-5, its latest and most advanced large-scale AI model. OpenAI said the model is smarter, faster and "a lot more useful," particularly across domains like writing, coding and health care. But it's been a rocky roll out, as some users complained about losing access to OpenAI's prior models. "We for sure underestimated how much some of the things that people like in GPT-4o matter to them, even if GPT-5 performs better in most ways," OpenAI CEO Sam Altman wrote in a post on X.

OpenAI eyes world's largest valuation for private company in stock sale talks

Maker of ChatGPT reported to be considering $6bn share sale that would boost valuation to $500bn - above SpaceX The maker of ChatGPT is on the cusp of becoming the world's most valuable private company. OpenAI is in talks to sell $6bn in shares, which would boost its valuation to $500bn, nearly half that of Tesla, according to multiple reports. The artificial intelligence startup's stock would be sold to investors by current and former employees. OpenAI has seen exponential growth over the past year. Investors, including Microsoft and SoftBank, have poured at least $40bn into the startup, giving it a valuation of $300bn as of Marc. Last October, it was valued at $157bn. If OpenAI achieves a $500bn valuation, it would surpass Elon Musk's SpaceX, which currently holds the title of world's most valuable privately held company, at $350bn. The reported cohort of investors now eyeing OpenAI's share sale include three firms that have already invested: SoftBank, Dragoneer Investment Group and Thrive Capital. According to Bloomberg, the talks are in early stages and the numbers could change. OpenAI declined to comment. OpenAI leads a crowded and competitive race, with the world's most powerful companies battling to beat out one another on AI. Meta, Google, Amazon and Microsoft have all been spending enormous sums on AI development - hiring engineers and building data centers. The four companies have spent a combined $155bn on AI development in 2025 alone. Although artificial intelligence has improved since the release of ChatGPT in 2022, OpenAI received a lukewarm reception at the debut of its latest version of the AI that underpins the chatbot, GPT-5, earlier this month. Users said the new AI model's writing was worse and that it lacked the personality of previous iterations. Altman has said his company is pursuing "artificial general intelligence", or an AI that can outdo a human at most tasks, but at the recent launch, OpenAI CEO Sam Altman said the GPT-5 was "generally intelligent", but was not yet able to "continuously learn". AI companies have also been increasingly scrutinized by regulators for chatbots that create harmful conversations and manipulate users.

OpenAI staffers to sell $6 billion in stock to SoftBank, other investors

Current and former OpenAI employees plan to sell approximately $6 billion worth of shares to an investor group that includes Thrive Capital, SoftBank Group Corp. and Dragoneer Investment Group, in a deal that values the ChatGPT maker at $500 billion, according to people familiar with the matter. The talks are early and the size of the share sale could still change, said the people, who asked not to be identified discussing private information. The secondary share investment is on top of SoftBank's commitment to lead OpenAI's $40 billion funding round, which values the company at $300 billion, according to another person familiar with the deal. That round remains ongoing, with OpenAI recently securing $8.3 billion from a syndicate of investors. Representatives for Dragoneer and Thrive didn't respond to requests for comment. Spokespeople for OpenAI and SoftBank declined to comment. All three firms are existing OpenAI backers. The secondary share sale, which was first reported by Bloomberg, will give OpenAI employees a chance to get cash-rich amid a high-stakes talent war in the artificial intelligence industry. Companies like Meta Platforms Inc. are offering massive salaries to recruit AI talent from OpenAI and other startups. This year, several OpenAI employees have exited for Meta, including Shengjia Zhao, a co-creator of ChatGPT. Allowing employees to sell shares is an important tool for startups trying to retain top talent, without requiring the company to go public or be acquired. In some cases, early investors also use these deals to sell down their stakes, though OpenAI investors are not eligible to do so in this round, according to a person familiar with the matter. Current and former employees who spent at least two years at the company are able to participate. With its participation in the share sale, as well as its previous commitments, SoftBank is making a pivotal bet on the success of OpenAI. In addition to those deals, the Japanese conglomerate headed by Masayoshi Son recently closed a separate $1 billion purchase of OpenAI employee shares at a $300 billion valuation, according to a person familiar with the matter. Negotiations for that deal started before talks around the $500 billion secondary valuation began, they said. The $500 billion valuation would make OpenAI the world's most valuable startup, surpassing Elon Musk's SpaceX. The company expects revenue to triple this year to $12.7 billion, up from $3.7 billion in 2024, Bloomberg has reported. And the secondary deal talks come on the heels of the release of its highly-anticipated GPT-5 model. This week, OpenAI chief Sam Altman sat down with a group of reporters and shared his vision for the company, including that it wants to spend trillions of dollars on the infrastructure required to run AI services in the "not very distant future." "You should expect a bunch of economists to wring their hands and say, 'This is so crazy, it's so reckless,' and whatever," Altman said. "And we'll just be like, 'You know what? Let us do our thing.'"

ChatGPT maker OpenAI to become whopping $500 billion company? Details here

OpenAI, the maker of ChatGPT, is in talks to sell $6 billion in shares owned by its current and former employees to investors, in a deal that would value the artificial intelligence company at roughly $500 billion, according to two people with knowledge of the discussions. At $500 billion, OpenAI would become the world's most valuable privately held company, according to data from startup tracker CB Insights. The San Francisco-based AI lab has raised billions of dollars in recent years from investors including Microsoft, SoftBank and venture capital firms as it has raced to take the lead in the contest over artificial intelligence, as per a report. OpenAI has seen its valuation repeatedly jump higher, from $157 billion in October to $300 billion in March. That month, the company reached an agreement with SoftBank and other investors for a new funding, which was set to raise $40 billion by the end of the year, NYT News Service reported. In this latest deal, known as a secondary market sale, OpenAI's current and former employees would agree to sell company shares to SoftBank, Thrive Capital and its other investors, the people with knowledge of the discussions said. The talks over the transaction are ongoing, and the particulars could change. The discussions over a secondary market sale were earlier reported by Bloomberg. Across Silicon Valley, AI companies have been deluged by investor interest amid an escalation in the race over the technology. Meta, Google, Amazon, Microsoft and OpenAI are spending billions to hire AI researchers to advance the technology, as well as building out data centers and other infrastructure to power the development of AI. Investors are eager to get a piece of the action. Venture capital deals for AI startups reached $129 billion this year through August 18, up from $106 billion for all of 2024, according to data from PitchBook, which tracks startups. Q1. What is current valuation of OpenAI? A1. OpenAI has seen its valuation repeatedly jump higher, from $157 billion in October to $300 billion in March. That month, the company reached an agreement with SoftBank and other investors for a new funding, which was set to raise $40 billion by the end of the year, NYT News Service reported. Q2. What do we know about AI startups? A2. Venture capital deals for AI startups reached $129 billion this year through August 18, up from $106 billion for all of 2024, according to data from PitchBook, which tracks startups.

From non-profit to $500 billion: OpenAI's valuation rise - The Economic Times

Founded in December 2015 as a nonprofit, which Elon Musk will keep reminding chief executive Sam Altman, OpenAI has evolved over the past decade to become one of the world's most valuable private technology companies. OpenAI's market cap: a timeline It started with grants, donations, and modest investments from technology leaders. But recent reports suggest that OpenAI is approaching a $500 billion market capitalisation as current and former employees may sell some shares. The company's valuation remained comparatively low during its early years while it focussed on developing its artificial intelligence (AI) technology. OpenAI became a unicorn and reached $1 billion in valuation in July 2019 as investor interest grew around AI research and commercialisation. This is when Microsoft was added to the company's cap table. By April 2021, as commercialisation within the tech and enterprise space and the relevance of large language models and generative AI increased, OpenAI's value was pushed to $14 billion. OpenAI released ChatGPT in November 2022, marking a major juncture for the company. The conversational AI chatbot took the world by storm, with hundreds of thousands using it regularly, and Big Tech peers coming out with rivals in the subsequent year. This pushed OpenAI's valuation to $29 billion by January 2023. In 2023, OpenAI expanded its offerings with new models and developer tools, such as plug-ins and enterprise APIs, which further accelerated its market presence. By February 2024, sustained growth and new product launches had taken OpenAI's valuation to $86 billion. However, a major fillip came in October 2024, when the company closed a $6.6 billion funding round led by major investors including Microsoft, Nvidia, and SoftBank. This round raised OpenAI's valuation to $157 billion, making it one of the highest-valued private companies globally. Also Read: OpenAI hits $12 billion in annualised revenue OpenAI closed a $40 billion funding round in March led by SoftBank Group, with other investors including Magnetar Capital, Coatue Management, Founders Fund, and Altimeter Capital Management participating. This nearly doubled the market cap to $300 billion. OpenAI's product evolution has continued, with launches like GPT-4 and, most recently, GPT-5 that have increased capabilities and increased adoption across sectors. Bloomberg reported on August 16 that current and former OpenAI employees are in talks to sell about $6 billion worth of stock to investors, including Thrive Capital, SoftBank Group Corp., and Dragoneer Investment Group, in a deal that would value the ChatGPT maker at $500 billion.

OpenAI staff looking to sell $6 billion in stock to SoftBank, others: Source - The Economic Times

Current and former OpenAI employees are reportedly looking to sell nearly $6 billion in shares, potentially valuing the company at $500 billion. Investors including SoftBank and Thrive Capital are in early talks. OpenAI's user base and revenue continue to soar, with ChatGPT reaching 700 million weekly active users.Current and former employees of OpenAI are looking to sell nearly $6 billion worth of the ChatGPT maker's shares to investors, including SoftBank Group and Thrive Capital, a source familiar with the matter told Reuters on Friday. The potential deal would value the company at $500 billion, up from $300 billion currently, underscoring both OpenAI's rapid gains in users and revenue, as well as the intense competition among artificial intelligence firms for talent. SoftBank, Thrive and Dragoneer Investment Group did not immediately respond to requests for comment. All three investment firms are existing OpenAI investors. Bloomberg News, which had earlier reported the development, said discussions are in early stages and the size of the sale could change. The secondary share sale investment adds to SoftBank's role in leading OpenAI's $40 billion primary funding round. Bolstered by its flagship product ChatGPT, OpenAI doubled its revenue in the first seven months of the year, reaching an annualized run rate of $12 billion, and is on track to reach $20 billion by the end of the year, Reuters reported earlier in August. Microsoft-backed OpenAI has about 700 million weekly active users for its ChatGPT products, a surge from about 400 million in February.

OpenAI Employees Eye $6 Billion Share Sale To SoftBank, Others Amid Soaring Company Valuation: Report - SoftBank Group (OTC:SFTBY)

Employees of AI firm OpenAI are reportedly mulling over the sale of nearly $6 billion worth of shares to investors, including SoftBank Group SFTBY and Thrive Capital. OpenAI May Hit $500 Billion Valuation Amid Soaring Growth The proposed deal could reportedly catapult OpenAI's valuation to $500 billion, marking a significant leap from its current $300 billion. This move highlights the company's accelerated user and revenue growth, along with the intense competition in the AI industry for talent, as per Reuters. This move underscores OpenAI's remarkable growth in terms of user base and revenue, and the intense competition among AI firms for skilled talent. SoftBank, Thrive and Dragoneer Investment Group, all existing OpenAI investors, have yet to comment on the matter. OpenAI, best known for its flagship product ChatGPT, has doubled its revenue in the first seven months of the year, reaching an annualized run rate of $12 billion. According to the publication, the company is on track to hit $20 billion by year-end. ChatGPT products now attract around 700 million weekly active users, up from 400 million in February. OpenAI did not immediately respond to Benzinga's request for comment. SEE ALSO: Jeff Bezos Once Asked Warren Buffett Why People Don't Just Copy His 'Simple' Investment Strategy -- He Said 'Because No One Wants To Get Rich Slow' - Benzinga OpenAI Lands US Federal Deal, Expands Reach Earlier in August, SoftBank's shares surged by 10% after the company teased a $12 billion windfall from OpenAI, highlighting the potential profitability of AI investments. CEO Sam Altman had previously stated that the company would need to spend trillions on AI infrastructure, drawing parallels to the dot-com bubble of the late 1990s. This proposed share sale could be a step towards accumulating the necessary capital. Furthermore, OpenAI recently secured a partnership with the U.S. General Services Administration, providing federal agencies access to its leading frontier models through ChatGPT Enterprise for $1 per agency for the next year. This partnership could further boost the company's user base and revenue. READ MORE: OpenAI CEO Sam Altman Reveals 'Sci-Fi' AI Companion Vision With Ex-Apple Design Chief Jony Ive To Replace Smartphones Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. SFTBYSoftBank Group Corp$55.8013.1%OverviewMarket News and Data brought to you by Benzinga APIs