OpenAI eyes $500 bn valuation in stock sale talks; plans to reward talent

OpenAI in talks for a secondary stock sale valuing it at $500 billion; a move aimed to reward staff, boost retention amid AI talent war and rapid expansion

OpenAI is in early discussions to launch a multibillion-dollar secondary stock sale that could value the artificial intelligence (AI) firm at around $500 billion, according to a report by Bloomberg.

 

The figure represents a sharp rise from the company’s previous $300 billion valuation and would place OpenAI among the most valuable privately held technology firms in the world.

 

The proposed transaction would also allow current and former employees to sell their shares, giving them an opportunity to realise gains from the company’s rapid growth.

 

Venture capital firm Thrive Capital is reported to be among the investors exploring potential purchases.

 

 

AI talent retention in a competitive market

The move comes as OpenAI faces intensifying competition for top AI researchers and engineers. Meta Platforms has reportedly hired at least eight OpenAI employees this year for its ‘Superintelligence’ division, offering $100 million pay packages.

 

Company insiders say the secondary sale is intended not only to reward staff but also to strengthen retention at a time when rival offers are becoming more aggressive, the report stated. While some high-profile departures have occurred, OpenAI maintains it has kept its “best” talent.

 

OpenAI clocks in 700 million weekly users

The talks over the secondary sale come amid the AI giant's rapid expansion. OpenAI announced that ChatGPT now has 700 million weekly active users, up from 500 million in March, and processes more than three billion messages per day. The company is preparing to release GPT-5, the next version of its flagship model, and has introduced two open-source models capable of human-like reasoning. 

In May, OpenAI agreed to acquire an AI hardware startup co-founded by former Apple design chief Jony Ive in an all-stock deal worth $6.5 billion. The company projects its 2025 cash burn will reach $8 billion as it ramps up research, development, and enterprise services.

 

OpenAI $30 billion fundraising

The planned secondary sale would run alongside the second phase of OpenAI’s $30 billion primary fundraising effort. Investors, including Sequoia Capital, Tiger Global, and SoftBank, have committed significant capital, with SoftBank’s total investment reaching $32 billion since late 2024. The latest $8.3 billion tranche was oversubscribed fivefold and closed ahead of schedule.

 

OpenAI’s Microsoft partnership

However, OpenAI still faces internal questions. Talks over its future as a for-profit entity remain unresolved, and Microsoft — which has invested nearly $13.75 billion — is seeking to secure long-term rights to OpenAI’s intellectual property. The companies’ current agreement ends in 2030, and changes to the partnership could affect product and investment plans.