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OpenAI valuation hits $500 billion as employees sell $6.6 billion in shares

by admin October 2, 2025
October 2, 2025
OpenAI valuation hits $500 billion as employees sell $6.6 billion in shares

OpenAI has become the world’s most valuable startup after closing a secondary share sale that allowed its employees to sell about $6.6 billion worth of stock, according to a Bloomberg exclusive.

The deal valued the company at $500 billion, overtaking Elon Musk’s SpaceX and establishing OpenAI as the top privately held startup by market value.

The transaction highlights investor appetite for artificial intelligence at a time when global competition for top talent and AI capabilities is intensifying.

While OpenAI allowed as much as $10 billion in shares to be sold, employees chose to offload less, showing confidence in the company’s growth potential.

OpenAI employee share sale details

The secondary share sale involved current and former OpenAI employees selling stock to a group of global investors. Buyers included Thrive Capital, SoftBank Group, Dragoneer Investment Group, Abu Dhabi’s MGX, and T. Rowe Price.

The $500 billion valuation is a significant jump from the $300 billion value OpenAI achieved in its $40 billion financing round led by SoftBank earlier this year.

The $6.6 billion transaction did not reach the full $10 billion allocation that OpenAI had made available. This indicates that many employees chose to retain their shares despite the lucrative opportunity, reflecting their confidence in the company’s long-term growth.

Secondary sales like this are commonly used by large US startups to provide liquidity to employees, reward retention, and attract new talent while opening up investment opportunities to select outside parties.

Global AI talent war and retention strategy

The sale comes as OpenAI faces intense competition for talent. Companies such as Meta Platforms Inc. have been aggressively recruiting AI researchers, including from OpenAI, with reports of compensation packages reaching nine figures.

By enabling employees to monetise their stock while remaining with the company, OpenAI is using secondary sales as a tool to counter rival offers and maintain its core team.

The strategy also signals that OpenAI is balancing employee satisfaction with investor interest, ensuring that the people behind its AI breakthroughs are rewarded without the company needing to go public.

This mechanism is increasingly common among high-profile startups as it allows for capital circulation and employee retention without triggering the scrutiny of an IPO.

Rise in valuation and industry positioning

The $500 billion valuation positions OpenAI ahead of SpaceX as the world’s most valuable startup. The new benchmark reflects both investor enthusiasm and the rapid commercialisation of artificial intelligence.

OpenAI’s valuation increase from $300 billion to $500 billion in under a year illustrates the pace at which capital is flowing into the sector.

This leap comes at a time when global demand for AI tools, from consumer-facing applications to enterprise solutions, continues to rise.

Investors see OpenAI’s central role in shaping the market through products like ChatGPT as a key driver of its valuation, with continued growth expected as the technology expands into new sectors.

Investor interest in secondary market sales

Investor participation in the deal included major global firms across the US, Asia, and the Middle East. Thrive Capital, SoftBank, Dragoneer, MGX, and T. Rowe Price were among those securing stakes through employee share sales.

The secondary sale structure is part of a broader trend where venture-backed companies provide liquidity to employees as valuations soar.

For OpenAI, the sale not only sets a valuation benchmark but also creates a pathway for further engagement with international investors without raising new capital directly.

The post OpenAI valuation hits $500 billion as employees sell $6.6 billion in shares appeared first on Invezz

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