OpenAI is planning for a massive secondary stock sale that would value the artificial intelligence pioneer at approximately $500 billion.
First reported by Bloomberg and later confirmed by CNBC. Given the present circumstances, the deal could see $6 billion worth of shares sold by current and former employees to major investors, including SoftBank, Dragoneer Investment Group and Thrive Capital.
Industry experts stated that Thrive Capital, an existing backer OF OpenAI will lead the funding round. Meanwhile, SoftBank and Dragoneer are also in discussions.
In contrast to the usual funding round, this transaction involves employees selling existing shares instead of issuing new equity.
The deal is also expected to surge valuation as the potential $500 billion valuation marks a dramatic increase from OpenAI’s $300 billion valuation in March 2024, when it raised $40 billion in a record-breaking private funding round.
This move follows the launch of the most advanced AI model to date, GPT-5, by OpenAI. This new model promises major improvements in writing, coding, and healthcare applications.
However, the launch has faced criticism as some users reported no access to older models like GPT-4.
Taking to X, CEO Sam Altman acknowledged the backlash, stating: “Most users should like GPT-5 better soon; the change is rolling out over the next day. The real solution here remains letting users customize ChatGPT’s style much more. We are working that!”