OpenAI Eyes $500B Valuation in Potential Secondary Stock Sale
OpenAI, the artificial intelligence powerhouse behind ChatGPT, is in advanced discussions with investors for a potential secondary stock sale that could catapult its valuation to an astonishing $500 billion. This proposed transaction, still in its nascent stages, would enable current and former employees to sell their shares, offering them a significant opportunity to realize gains from the company’s meteoric rise. Existing investor Thrive Capital is reportedly poised to lead this pivotal deal, underscoring continued confidence in the AI leader’s trajectory.
This prospective $500 billion valuation marks a dramatic escalation from OpenAI’s previous assessment of $300 billion, established during a $40 billion primary funding round in April. Should the deal materialize, it would position OpenAI as the most valuable private startup globally, surpassing even Elon Musk’s SpaceX, which was valued at $350 billion in December, and ByteDance, the parent company of TikTok, at $315 billion. The rapid appreciation reflects the intense investor interest and the escalating competition for top-tier talent within the burgeoning artificial intelligence sector.
The motivation behind this secondary sale is multifaceted. Primarily, it aims to provide liquidity to long-serving employees, allowing them to cash in on their equity without the company needing to raise new capital or dilute existing shareholders. This strategy is crucial for talent retention, especially as the AI industry grapples with an aggressive talent war. Reports indicate that rival firms, notably Meta, are aggressively recruiting AI researchers, offering substantial compensation packages to build their own “superintelligence” divisions. By enabling employees to sell shares, OpenAI can offer a powerful counter-incentive, aligning financial rewards with the company’s explosive growth.
OpenAI’s surging valuation is underpinned by impressive operational momentum. Its flagship product, ChatGPT, continues to demonstrate widespread adoption, nearing 700 million weekly active users, a significant jump from approximately 400 million in February. This user growth has translated into robust financial performance, with annual recurring revenue (ARR) reportedly doubling in the first seven months of 2025. The company is now operating at an annualized revenue run rate of $12 billion and is projected to reach $20 billion by the end of the year. Such rapid scaling fuels investor optimism, despite the considerable infrastructure and research and development costs associated with advancing AI.
While the company is not yet profitable, its revenue trajectory and user engagement signal strong market validation for its generative AI technologies. This secondary share sale is also seen as a strategic move preceding a potential Initial Public Offering (IPO), though OpenAI’s Chief Financial Officer Sarah Friar has indicated that a public listing would only occur when both the company and market conditions are optimal. The discussions also coincide with hints from OpenAI about the imminent announcement of GPT-5, with early testers reportedly impressed by its capabilities, particularly in scientific, coding, and mathematical applications. The anticipation around new model releases further fuels investor excitement and confidence in OpenAI’s continued technological leadership.
The current discussions highlight a broader industry trend where leading private technology firms are utilizing secondary transactions to update their valuations and reward staff in a dynamic capital market. Competitors like Anthropic are also reportedly seeking substantial funding at high valuations, further illustrating the intense race for capital and talent in the AI ecosystem. As OpenAI navigates these complex financial and operational landscapes, its potential $500 billion valuation underscores the profound impact and perceived future value of artificial intelligence.