OpenAI Boosts Secondary Stock Sale to $103 Billion, Valuation Hits $500 Billion

OpenAI, a prominent artificial intelligence startup, has announced a significant expansion in the scale of its secondary stock sale. The company is now offering eligible current and former employees the opportunity to sell approximately 103 billion dollars worth of stock, surpassing the initially set target of 60 billion dollars. This move underscores the growing confidence in OpenAI's potential and the increasing interest from investors in the AI sector.

The estimated valuation for this sale is projected to reach 500 billion dollars, marking a new high for the company. This development comes as OpenAI continues to solidify its position as one of the few high-valued tech startups. The company has a history of providing such opportunities to its employees, aiming to alleviate the pressure of going public while allowing employees to monetize their holdings. This strategy is not unique to OpenAI; other companies like SpaceX, Stripe, and Databricks have also employed similar tactics to help their employees lock in some gains.

OpenAI has formally proposed this acquisition offer to its employees, with those holding stock for more than two years required to decide by the end of September whether to participate. The transaction is expected to be completed by October. Notable investors involved in this round include SoftBank, Dragoneer Investment Group, Thrive Capital, MGX from Abu Dhabi, and T. Rowe Price. While Thrive Capital and T. Rowe Price declined to comment, representatives from the other companies did not respond to requests for comment.

This secondary stock sale not only benefits the employees by allowing them to monetize their holdings but also serves as a testament to OpenAI's robust financial health and future prospects. The company's decision to increase the sale scale reflects its commitment to fostering a strong and motivated workforce, as well as its ambition to continue leading the AI industry. The expansion of the sale scale by over 40 billion dollars highlights the company's strategic move to capitalize on the current market enthusiasm and provide liquidity to its employees. This development underscores the growing confidence in OpenAI's potential and the increasing interest from investors in the AI sector.