OpenAI, the company behind ChatGPT, is in early-stage discussions for a potential stock sale that could value the artificial intelligence giant at around $500 billion, according to a source familiar with the matter.
The proposed transaction, which would take place before a possible initial public offering, is aimed at allowing current and former employees to cash out a portion of their holdings. The sale could involve several billion dollars’ worth of shares, the source said, requesting anonymity due to the private nature of the talks.
If concluded, the deal would represent a dramatic leap from OpenAI’s current valuation of $300 billion and highlight the surging investor interest in generative AI, as well as the intense race among tech firms to recruit and retain top talent in the sector.
Powered by the widespread adoption of its flagship ChatGPT platform, OpenAI has doubled its revenue in the first seven months of the year, reportedly reaching an annualized run rate of $12 billion. It is projected to hit $20 billion by the end of the year. ChatGPT now boasts approximately 700 million weekly active users, a steep rise from 400 million in February.
The share sale discussions follow OpenAI’s ongoing primary funding round, led by Japan’s SoftBank Group, which is expected to raise up to $40 billion. SoftBank has committed $22.5 billion of that amount and has until year-end to fulfill the pledge. The remainder of the round has already been subscribed at the existing $300 billion valuation, the source noted.
Major investors, including Thrive Capital, are reportedly in talks to participate in the secondary share sale, though Thrive declined to comment. Bloomberg first reported the potential deal.
Amid the funding activity, OpenAI is also undergoing a major corporate restructuring that could move it away from its current capped-profit model—possibly paving the way for a future IPO. However, Chief Financial Officer Sarah Friar has maintained that an IPO would only take place when both the company and broader markets are ready.
Meanwhile, competition for AI talent continues to intensify. Meta is reportedly investing billions in Scale AI to lure its young CEO, Alexandr Wang, to lead a new superintelligence division. Other unlisted firms, including ByteDance, Databricks, and Ramp, have similarly used private share sales to refresh valuations and reward early employees.
The developments underscore the rapidly evolving landscape of artificial intelligence, where valuation races and talent wars are shaping the future of the industry.
