OpenAI Completes $6.6 Billion Share Sale at $500 Billion Valuation

OpenAI has completed a secondary share sale totaling $6.6 billion, achieving a valuation of $500 billion. This transaction allows current and former employees to sell their shares, marking OpenAI as the world's most valuable privately held company, surpassing SpaceX's valuation of $456 billion.

The share sale, which was initially authorized for up to $10.3 billion, saw about two-thirds of the shares change hands. This lower participation is viewed internally as a sign of employee confidence in the company's long-term prospects. The sale involved investors such as Thrive Capital, SoftBank, Dragoneer Investment Group, Abu Dhabi's MGX, and T. Rowe Price.

Eligible employees who had held shares for more than two years were given the option to participate in this sale. The move is part of a strategy to retain talent amid fierce competition in the AI sector, allowing employees to cash out while the company remains private.

Sam Altman, CEO of OpenAI, continues to lead the company as it navigates the competitive landscape of AI talent acquisition, with companies like Meta reportedly offering substantial compensation packages to attract top researchers.