The artificial intelligence pioneer backing ChatGPT, OpenAI, has vaulted to a $500 billion valuation after a high-profile secondary share sale. This new valuation positions the company as the most valuable private company and startup in the world.
The $500 billion valuation was achieved following a secondary share sale in which current and former employees sold about $6.6 billion worth of shares. In other words, the deal worth $6.6 billion in employee-held shares.
The investors that bought the shares include SoftBank, Thrive Capital, Dragoneer Investment Group, Abu Dhabi’s MGX, and T. Rowe Price. This new valuation is a bump from earlier this year, when OpenAI was valued at around $300 billion after its primary funding round led by SoftBank.
Meanwhile, it's important to note that unlike a traditional funding round, the deal did not inject new capital into OpenAI itself. Instead, it provided liquidity for early staff and shareholders. This shows the extraordinary investor demand to gain exposure to the intensifying AI boom.
According to reports, OpenAI had authorized more than $10 billion in possible stock sales on the secondary market, though the executed transaction was about $6.6 billion. In the space of just a few months, OpenAI has overtaken Elon Musk’s SpaceX—last valued near $400 billion—to become the crown jewel of private tech.
The Deal Is A Deeper Trend
The share sale comes amid strong financial momentum for the company. In the first half of 2025, OpenAI reportedly generated $4.3 billion in revenue—that's about 16 percent more than its total revenue in all of 2024.
This shows that AI companies are no longer speculative bets but revenue-generating sources attracting long-term institutional money. Meanwhile Analysts attribute the surge to enterprise adoption of its AI models and rapid expansion of its premium consumer services.
In fact, one Silicon Valley venture capitalist told reporters that "this is less about hype and more about structural change in the global economy," pointing to AI’s integration into everything from healthcare to financial services.
Meanwhile, the deal is transformative for the OpenAI's employees. Many early staff, who worked through years when AI research was an expensive gamble, are now multimillionaires. Their cash-outs also is a cultural shift in Silicon Valley, where liquidity events outside traditional IPOs are becoming increasingly common.
Global stakes in the AI race
It's important to note that OpenAI’s valuation reverberates far beyond Wall Street. Even regulators around the world are concerned about how to regulate AI technologies that are changing their labor markets, security, and communications.
Meanwhile, competitors—Anthropic, xAI, and Google DeepMind—and OpenAI itself are bring the AI tech to more people around the world. Even investors like SoftBank that have ambition to stake a stronger claim in the AI revolution are not slowing down at all.
Infact, Abu Dhabi’s MGX positions itself in the Middle East’s to using sovereign wealth to pivot from oil dependence to cutting-edge technology. Meanwhile, despite all these optimisms, questions remain about sustainability.
At $500 billion, OpenAI is approaching the valuation territory of public giants like Tesla and Meta, raising concerns about whether growth can keep pace with expectations. Regulatory scrutiny, rising infrastructure costs, and intensifying competition are also another factors to consider.
Still, for now, OpenAI’s trajectory has become a symbol of how quickly artificial intelligence has gone from futuristic novelty to the defining economic force of the decade. What do you think about this AI growth that's intensifying around the world? Let's know your opinions in the comments section.
