OpenAI has taken a monumental leap in value, reaching an extraordinary $500 billion valuation following a recent secondary share sale. This transaction allowed current and former employees to sell approximately $6.6 billion in shares to a consortium of prominent investors, including Thrive Capital, SoftBank, Dragoneer Investment Group, Abu Dhabi’s MGX, and T. Rowe Price. This latest development vaults OpenAI past Elon Musk’s SpaceX, making it the most valuable private startup in the world.
This secondary sale is more than just a financial transaction. It signals sustained confidence in OpenAI’s trajectory despite the company’s rapid valuation growth from $300 billion earlier in 2025. The sale encompassed approximately two-thirds of the authorized $10 billion worth of shares made available on the secondary market. The partial participation rate among employees is interpreted as a positive sign, many retained their stakes, betting on the company’s long-term potential amid a highly competitive landscape for artificial intelligence talent.
OpenAI’s recent growth has been nothing short of staggering. Founded in late 2015, the company has quickly matured into a leader in generative AI technology, developing flagship offerings such as ChatGPT, DALL-E, and the Sora model. In 2024, the company generated $3.7 billion in revenue, which is projected to jump to around $12.7 billion in 2025, representing a 243% year-over-year increase. This explosive growth is fueled by tens of millions of paid ChatGPT subscribers and a rapidly expanding enterprise customer base that now includes millions of business users.Â
Despite this surge in revenue, OpenAI continues to invest heavily in its infrastructure and research. The company anticipates substantial cash burn in the coming years to maintain its technological edge and scalability. Projections indicate spending could climb to $17 billion in 2026, escalating up to $45 billion annually by 2028. These funds aim to support the construction of data centers, development of proprietary AI chips, and training of advanced AI models, all critical elements underpinning OpenAI’s future roadmap.
This valuation milestone also underscores the fierce competition unfolding in the AI talent pool. Tech giants like Meta Platforms have reportedly been enticing top researchers with nine-figure compensation packages to join new superintelligence research divisions. OpenAI’s secondary share sale can be seen as a strategic move to retain and reward employees, offering liquidity without moving toward an initial public offering at this stage.Â
In addition, OpenAI forms part of a growing cohort of highly valued private firms, including SpaceX, Stripe, and Databricks, that use secondary sales to provide employee liquidity while maintaining private status. This approach enables the company to capitalize on investor interest and maintain agility in a fast-evolving sector.
Financially, OpenAI has also gained significant backing from major institutional investors. SoftBank led the prior $40 billion funding round earlier this year, and Microsoft, Nvidia, and other technology powerhouses have also contributed substantial capital. Elon Musk, a co-founder, initially invested $45 million in the early days and retains a symbolic stake in the firm’s journey.
With 500 employees as of 2025, a twentyfold increase from its early team size, the company continues scaling at a rapid pace. Its expanding workforce and business partnerships underpin a substantial presence in the generative AI market, which held a 17% share as of 2025 and has grown from under $200 million in 2022 to over $25 billion in 2024.
OpenAI’s rise to a $500 billion valuation in less than a decade since its inception reflects the profound transformation AI technology is driving across industries. The secondary share sale not only affirms this value but also illustrates the growing appetite among investors and workers alike for participation in the AI revolution. As OpenAI continues to forge ahead with ambitious plans for AI innovation, its market position and financial commitments will remain a critical bellwether for the broader tech landscape.
