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5d ago

OpenAI in Talks for $500 Billion Secondary Share Sale

The plan would let staff cash out before any IPO after closing an $8.3 billion tranche in its $40 billion fundraising effort last week.

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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

  • The proposed transaction would involve current and former employees selling several billion dollars of equity in a secondary tender rather than injecting new capital into the company.
  • A roughly $500 billion valuation represents a two-thirds increase from the $300 billion mark established during its SoftBank-led $40 billion round in March.
  • Last week’s $8.3 billion tranche was the latest closing in that broader fundraising push, which remains the largest private tech round ever.
  • Existing backers, notably Thrive Capital, are in discussions to lead or participate in the share sale, underscoring deep investor confidence.
  • OpenAI’s surge to about 700 million weekly ChatGPT users and a $12 billion annualized revenue run rate has doubled its top-line in seven months and set it on track for $20 billion by year’s end.