OpenAI Surpasses SpaceX as World's Most Valuable Private Company in $6.6B Share Sale
OpenAI, developer of the AI model ChatGPT, has seen a significant boost in its valuation, reaching $500 billion following a $6.6 billion secondary share sale. The sale, which provides employees with liquidity, has made OpenAI the world's most valuable private company, surpassing SpaceX.
The sale involved major investors such as Thrive Capital, SoftBank, Dragoneer Investment Group, MGX from Abu Dhabi, and T. Rowe Price, although the exact amounts invested by each company remain undisclosed. This is OpenAI's second major tender offer in under a year, following a $1.5 billion SoftBank transaction in November 2022.
OpenAI lifted its capped-profit limit in May, allowing current and former staff to sell shares to several companies, including SoftBank and Thrive Capital. The company has also unveiled a strategic infrastructure partnership with Nvidia, planning to deploy at least 10 gigawatts of Nvidia systems.
The share sale has valued OpenAI at $500 billion, helping it compete with rivals like Meta for talent. Meanwhile, SoftBank's U.S.-traded shares (SFTBY) rose 1.7% to $66.04 following the news. OpenAI continues to face legal pressure from co-founder Elon Musk, who has sued the company multiple times.
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