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2h ago

OpenAI Explores Employee Share Sale to Reach $500 Billion Valuation

The discussions would let employees and alumni cash out billions in shares before any initial public offering.

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A view of the OpenAI and SoftBank Group logos on the day of an event to pitch AI for businesses in Tokyo, Japan February 3, 2025. REUTERS/Kim Kyung-Hoon/File Photo
OpenAI

Overview

  • OpenAI is holding confidential early-stage talks for a secondary share sale that could value the company at about $500 billion.
  • The proposed transaction would allow current and former employees to sell several billion dollars of their private holdings.
  • Existing investors including Thrive Capital and SoftBank Group are weighing participation in the secondary offering.
  • Unlike primary fundraising, proceeds from the deal would flow directly to insiders rather than boost OpenAI’s balance sheet.
  • Powered by ChatGPT’s surge to roughly 700 million weekly active users, OpenAI has doubled its annualized revenue run rate to about $12 billion.