Secondary Share Sale Could Catapult OpenAI’s Valuation
OpenAI, the developer behind
ChatGPT, is reportedly considering a secondary stock sale that could push its valuation to $500 billion—a dramatic leap from the $300 billion mark it set after a landmark $40 billion funding round earlier this year[1][2][3]. This move would enable current and former employees to cash out a portion of their equity and is attracting major investor interest from firms like Thrive Capital[2][3].
Record Growth and Revenue Fuel Valuation
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Growth Drivers: OpenAI’s rapid expansion is underscored by 700 million weekly active
ChatGPT users and $13 billion in annual recurring revenue—up from $10 billion in June[1][3].
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Subscriber Surge: The company has grown its paid business subscriber base from three million to five million in recent months, projecting revenue above $20 billion by year-end[3].
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Historical Context: The $500 billion valuation marks a 67% increase over the company’s valuation from March 2025 and would place OpenAI in a rarefied tier among global tech companies[1][3].
Employee Liquidity and Talent Retention at the Forefront
OpenAI’s secondary stock sale is designed to provide liquidity for its employees—making employee equity between 0.1% and 10% crucial for talent retention in a fiercely competitive sector[1][2][3]. This is particularly significant as rivals like Meta and Alphabet maintain aggressive recruitment with nine-figure compensation packages for leading AI researchers[2][3].
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Talent War: Several OpenAI staff have been recruited by Meta, intensifying competition for the industry’s top minds[2].
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Investor Dynamics: Microsoft, OpenAI’s largest investor, is central to ongoing discussions about the company’s for-profit status and its possible long-term IPO potential[2].
AI Infrastructure and Competitive Landscape
OpenAI’s financial moves come amid a sector-wide surge in AI investment, with Meta planning $100 billion and Alphabet raising its 2025 capital expenditure target to $85 billion[3]. Simultaneously, rival AI startups like Anthropic and
xAI are raising billions at soaring valuations, signaling the intensity of the AI arms race[3].
- The $13 billion “Stargate” infrastructure project, backed by Microsoft, highlights OpenAI’s focus on compute resources and enterprise integration as key drivers of AI commercialization[1].
Risks and Long-Term Outlook
Despite the staggering growth, investors remain cautious due to OpenAI’s substantial projected losses ($10–14 billion annually) and looming regulatory scrutiny tied to its Public Benefit Corporation (PBC) structure[1]. Nonetheless, the size and speed of OpenAI’s rise have made it a focal point in the global shift toward AI-driven economics, setting the stage for even more disruptive evolution in the sector[1][3].
For further details, visit
Reuters.
