OpenAI Targets $500 Billion Valuation in Employee Share Sale Amid Soaring Growth

OpenAI, the developer behind ChatGPT, is reportedly exploring a new stock sale that could value the company at an astonishing $500 billion. This internal transaction would allow current and former employees to sell shares, according to a source familiar with the discussions. The move would represent a massive jump from its current $300 billion valuation and highlights the rapid momentum the AI company has gained in both user adoption and financial performance.

This potential sale is still in its early stages and is separate from any formal plans for an initial public offering (IPO), which OpenAI has indicated is not imminent. The company is considering the transaction as a way to reward employees and update its valuation. Thrive Capital, a major existing investor, is among the firms reportedly interested in participating in the deal, though it declined to comment publicly.

OpenAI’s explosive revenue growth is driving much of the excitement. Thanks largely to the success of ChatGPT, the company has reportedly doubled its revenue in the first seven months of the year and is currently operating at an annualized run rate of $12 billion—potentially reaching $20 billion by year-end. These figures underline OpenAI’s growing commercial influence in the tech and AI space.

As OpenAI scales, it also faces intensifying competition for AI talent. Tech giants such as Meta are reportedly investing billions in firms like Scale AI, in efforts to lure top executives like Alexandr Wang to lead advanced AI units. This arms race for talent is prompting companies to offer generous equity deals and compensation packages to attract and retain key players in artificial intelligence.

To support its long-term vision, OpenAI is undergoing a significant corporate restructuring that would allow for more flexibility in its financial model. Moving away from its capped-profit structure may open the door for a future IPO. However, Chief Financial Officer Sarah Friar has stated that any public listing will only occur once both the company and the markets are deemed ready.

Source: Reuters