OpenAI has achieved a $500 billion valuation, surpassing SpaceX to become the world's most valuable startup. This milestone was reached after a secondary share sale, where current and former employees cashed out approximately $6.6 billion worth of shares.
Details of the Share Sale
The secondary share sale involved investors including Thrive Capital, SoftBank, Dragoneer Investment Group, Abu Dhabi's MGX, and T. Rowe Price. While OpenAI had authorized the sale of over $10 billion worth of stock, only about two-thirds of that amount was actually traded. This lower participation rate is viewed internally as a sign of confidence in the company's long-term prospects and robust investor demand. The offer to sell shares was extended to qualified current and past employees who had owned shares for more than two years.
Valuation and Market Position
The $500 billion valuation marks a significant increase from the $300 billion valuation OpenAI held earlier in the year. This surge reflects the rapid growth and investor enthusiasm surrounding the company. With this new valuation, OpenAI now exceeds the valuation of SpaceX and ByteDance. The company's valuation is roughly equivalent to Tesla's market capitalization.
Strategic Implications
This transaction arrives amidst an escalating competition among technology firms to secure top AI talent. Meta, in particular, has reportedly offered substantial compensation packages to attract leading academics. By allowing employees to monetize their shares while remaining with the company, OpenAI aims to incentivize its workforce and retain talent in a competitive market.
Financial Performance and Future Plans
OpenAI has experienced significant revenue growth, generating approximately $4.3 billion in the first half of 2025. This figure represents a 16% increase compared to its total earnings for the entire previous year. Despite this growth, OpenAI has yet to turn a profit. The company reported an operating loss of $7.8 billion in the first half of 2025, with $2.5 billion burned largely due to research and development costs associated with AI development and running ChatGPT.
Looking ahead, OpenAI is focused on developing its next-generation models and addressing the computational challenges of scaling AI. CEO Sam Altman has recently toured the proposed Stargate AI data center in Texas, which is part of an estimated $850 billion infrastructure buildout. This buildout aims to create an additional 4.5 gigawatts of AI data center capacity over the next five years. OpenAI is also expanding its reach through the "OpenAI for Countries" program, assisting nations in building AI infrastructure grounded in democratic principles and supporting local languages, cultures, and data sovereignty.
Background
Founded in 2015 as a non-profit organization, OpenAI's initial goal was to advance digital intelligence in a way that benefits humanity. The company is reportedly in negotiations with Microsoft to transition into a more traditional for-profit structure. Planned changes would give the existing OpenAI nonprofit entity control over a new public benefit corporation.
