Secondary Share Sale

OpenAI completed a $6.6 billion secondary share sale, valuing the company at $500 billion, a record for an AI firm. The sale, involving Thrive Capital, SoftBank, and others, allowed current and former employees to liquidate equity. While OpenAI authorized a larger sale, less than anticipated shares changed hands, seen as a sign of investor confidence. This follows a previous $1.5 billion deal and positions OpenAI as the most valuable private company, surpassing SpaceX. The sale aids employee retention amidst intense AI talent competition.

OpenAI is expanding its secondary share sale to approximately $10.3 billion, up from the initially planned $6 billion, valuing the AI firm at $500 billion. This provides current and former employees a chance to liquidate equity. Key investors include SoftBank, Dragoneer, and T. Rowe Price. The move gives OpenAI flexibility to invest in R&D, scale infrastructure, and attract talent, while avoiding the pressures of an immediate IPO. This increased sale reflects confidence in OpenAI’s long-term prospects and validates its leading position in generative AI.