OpenAI Eyes Record $500 Billion Valuation In Employee Share Sale Amid AI Arms Race: Report

ChatGPT maker OpenAI is reportedly exploring a secondary stock sale that could value the artificial intelligence company at $500 billion, marking a significant jump from its current $300 billion valuation.

Employee Share Sale Talks Underway

The early-stage discussions would allow OpenAI employees to cash out their equity stakes while attracting new investment. Existing investors, including Thrive Capital, are participating in the talks, Reuters reported, citing sources.

The potential $500 billion valuation represents a 67% increase from OpenAI’s current $300 billion worth, established during a record-setting $40 billion funding round finalized in April. That round, led by SoftBank Group Corp. (OTC:SFTBY) with Microsoft Corp. (NASDAQ:MSFT) participation, was the largest in venture capital history according to PitchBook data.

OpenAI did not immediately respond to Benzinga's request for comment.

See Also: OpenAI, Palo Alto, SoftBank Deals Power $2.6 Trillion Global M&A Boom—Biggest Since 2021 Pandemic Peak

AI Talent War Drives Compensation Competition

The share sale would provide financial incentives to retain top AI researchers as technology giants, including Meta Platforms Inc. (NASDAQ:META) and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) compete aggressively with lucrative compensation packages. OpenAI’s revenue surge to $13 billion annually, up from $10 billion in June, demonstrates the company’s rapid scaling capabilities.

The company now serves 700 million weekly active ChatGPT users and has grown its paid business subscribers to five million from three million in recent months. OpenAI projects revenue will exceed $20 billion by year-end.

Market Context and Competitive Landscape

OpenAI’s valuation discussions occur as the AI sector experiences unprecedented investment flows. Meta, Microsoft, and Alphabet are driving a $250 billion surge in AI infrastructure spending through 2025-26, with Meta planning nearly $100 billion by 2026 and Alphabet raising its 2025 capital expenditure target to $85 billion.

Rival Anthropic is simultaneously seeking $3-5 billion in funding at a potential $170 billion valuation, while Elon Musk‘s xAI recently completed $10 billion in debt and equity raises after rejecting reports of seeking additional funding at a $200 billion valuation.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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