OpenAI plans $500B valuation with secondary share sale for current & former employees.

OpenAI plans $500B valuation with secondary share sale for current & former employees.

OpenAI, the leading artificial intelligence (AI) startup, is in early talks about a potential secondary share sale that could elevate its valuation to $500 billion. The company is exploring this option to provide liquidity to its current and former employees, reflecting the significant growth of the business [1].

The discussions come on the heels of OpenAI securing $8.3 billion from a syndicate of investors for a second tranche of its $40 billion financing round, which was oversubscribed by nearly five times [2]. This latest funding round, led by SoftBank Group Corp., valued the company at $300 billion. The secondary share sale aims to raise billions of dollars, potentially surpassing last year's $1.5 billion raise [2].

OpenAI's CEO, Sam Altman, has confirmed that the company is mixing up its fundraising strategy, targeting both new and old investors. Dragoneer Investment Group, TPG, T Rowe Price, and Blackstone are among the investors participating in the latest round, with Dragoneer pledging $2 billion [2]. The company has also been in talks with major financial institutions such as Brookfield Asset Management, JPMorgan, and Apollo Global Management [2].

The secondary share sale is expected to benefit OpenAI's employees, allowing them to cash out as the company gears up for the release of its latest GPT-5 model. This move could help retain top talent, given the competitive nature of the AI industry and the lavish compensation packages offered by companies like Meta Platforms Inc. [1].

The funding also brings OpenAI closer to a potential initial public offering (IPO), with the company's recurring annual revenue (ARR) growing to $12 billion since the launch of ChatGPT in 2022 and forecasted to exceed $20 billion in 2025 [2]. OpenAI's CFO, Sarah Friar, has indicated that the company is not yet ready to go public but is building a sustainable business structure backed by sufficient funds [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-06/openai-in-talks-for-share-sale-valuing-startup-at-500-billion
[2] https://www.cryptopolitan.com/openai-targets-500b-valuation-ipo/
[3] https://www.cnbc.com/2025/08/05/openai-talks-with-investors-about-share-sale-at-500-billion-valuation.html