OpenAI has officially become the world’s most valuable startup, reaching a staggering $500 billion valuation after a secondary share sale.
The artificial intelligence pioneer, best known for creating ChatGPT, has now overtaken Elon Musk’s SpaceX, which is valued at around $400 billion.
This milestone cements OpenAI’s position as a leading force in the AI-driven transformation of global industries.
The deal, which allowed current and former employees to sell $6.6 billion worth of shares, attracted heavyweight investors such as Thrive Capital, SoftBank, Dragoneer Investment Group, Abu Dhabi’s MGX, and T. Rowe Price.
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The new valuation marks a massive jump from OpenAI’s earlier $300 billion estimate during a SoftBank-led round earlier this year.
For employees, the transaction not only unlocked liquidity but also signaled investor confidence in the company’s long-term vision.
A Growing AI Powerhouse
Founded in 2015 as a nonprofit, OpenAI has quickly evolved into one of the most influential players in the artificial intelligence industry.
Under CEO Sam Altman’s leadership, the company has formed critical partnerships with Microsoft, Oracle, and SK Hynix to expand data center capacity and advance AI infrastructure.
While OpenAI has yet to generate sustained profits, its cutting-edge technology and enterprise deals highlight its potential to reshape sectors from cloud computing to education and healthcare.
The rapid rise in OpenAI’s valuation underscores the frenzy surrounding AI development.
Nvidia, another AI powerhouse, has also seen explosive growth as companies race to secure the hardware and software needed to power next-generation models.
Analysts believe the trillion-dollar infrastructure buildout for artificial intelligence will define the next era of global technology investment.
Musk vs. OpenAI
OpenAI’s latest success comes amid ongoing tensions with co-founder Elon Musk.
Musk, who left the board in 2018, has accused the company of straying from its original nonprofit mission and has filed lawsuits challenging its shift toward a for-profit structure.
Despite the disputes, OpenAI has pressed ahead with plans to convert into a public benefit corporation while maintaining oversight from its nonprofit entity.
Both Altman and Musk have long acknowledged the existential risks AI poses to humanity, but their split highlights the growing debate over how such technology should be developed and governed.
Battling for AI Talent
The competition for top AI researchers is heating up. Meta Platforms has aggressively recruited experts from OpenAI and rival labs, reportedly offering compensation packages reaching nine figures.
To counter this, OpenAI is using stock sales as a way to retain talent by giving employees direct benefits from the company’s soaring valuation.
Despite selling billions in shares, employees left a significant portion of eligible stock unsold, a move that industry observers see as a vote of confidence in OpenAI’s long-term prospects.
What’s Next for OpenAI
To maintain its competitive edge, OpenAI has accelerated product launches, including the release of GPT-5 in August and two open-source models designed to mimic human reasoning.
These moves come in response to intensifying global competition, particularly from rivals like Google’s DeepMind, Anthropic, and China’s DeepSeek.
For now, OpenAI’s $500 billion valuation is more than just a financial milestone – it reflects the company’s central role in shaping the AI revolution.
As industries and governments grapple with the opportunities and risks of artificial intelligence, OpenAI’s influence is set to grow even further in the years ahead.
