Key Points
- OpenAI is in talks for an employee stock sale that could value it at $500 billion.
- This is a huge increase from its current $300 billion valuation.
- The sale would allow employees to cash out some of their shares, helping with talent retention.
- OpenAI’s revenue is on track to hit $20 billion this year, and it has 700 million weekly users.
OpenAI, the creator of ChatGPT, is in early talks for a stock sale that would let its employees cash out some of their shares and could value the company at a stunning $500 billion. A source familiar with the discussions confirmed the potential deal on Tuesday.
This would be a massive jump from OpenAI’s current $300 billion valuation, highlighting the company’s explosive growth and the fierce competition for AI talent. The deal, which would happen before any potential IPO, would allow current and former employees to sell several billion dollars’ worth of their shares.
Fueling the sky-high valuation is the company’s incredible performance. OpenAI has doubled its revenue in the first seven months of the year and is on track to bring in $20 billion by year’s end. Its flagship product, ChatGPT, now has about 700 million weekly active users, up from 400 million in February.
The share sale is also a strategic move to keep its top employees. With tech giants like Meta spending billions to poach talent, letting staff sell their shares is a powerful way to reward them and keep them from leaving.
This potential employee stock sale is happening separately from a major $40 billion funding round led by SoftBank. While the company is also working on a corporate restructuring that would open the door for a future IPO, its CFO has said that it won’t happen until the time is right.
