OpenAI, the company behind the revolutionary ChatGPT and Sora, has reached a staggering $500 billion valuation in its latest market assessment, solidifying its position as the world's most valuable private company. This milestone, achieved through a secondary share sale, surpasses Elon Musk's SpaceX and ByteDance, the parent company of TikTok.
The transaction involved current and former employees selling approximately $6.6 billion worth of shares to a consortium of investors. This group included Thrive Capital, SoftBank, Dragoneer Investment Group, Abu Dhabi's MGX, and T. Rowe Price. While OpenAI had authorized the sale of up to $10.3 billion in shares, the $6.6 billion transacted was sufficient to catapult its valuation to this new height. The secondary sale provided an opportunity for employees who have held their stock for over two years to liquidate their equity. The fact that not all available shares were sold indicates continued confidence in OpenAI's future prospects among its employees.
This valuation marks a significant increase from OpenAI's previous valuation of $300 billion, which was established during a $40 billion capital raise led by SoftBank earlier in the year. The company's valuation has increased more than threefold in approximately a year, from $157 billion in October of last year to $300 billion in March of this year.
The surge in valuation is underpinned by the company's rapid revenue growth. OpenAI reportedly generated $4.3 billion in revenue in the first half of 2025, exceeding its total revenue for 2024. Projections for the full year 2025 estimate a revenue of $12.7 billion, a 243% increase compared to the previous year. This growth is fueled by the widespread adoption of its AI models by enterprises and the increasing use of its APIs.
OpenAI's technology is being used across various industries, with its APIs and models serving as the foundation for AI-enabled software development. The company's focus extends beyond chatbots, aiming to empower developers to create diverse applications using its AI tools.
OpenAI and Microsoft have a non-binding agreement in place to restructure OpenAI into a for-profit entity. Microsoft has already invested billions in OpenAI, including a $1 billion investment in 2019 and another $10 billion in early 2023. These investments grant Microsoft exclusive rights to sell OpenAI's software on its Azure cloud platform and provide preferred access to the startup's technology.
OpenAI has also announced plans to build massive AI data centers across America with $100 billion backing from NVIDIA. The company is also working on expanding AI infrastructure in other countries, including the UK, through its Stargate venture.
The company recently launched Sora 2, a new AI video generation app that allows users to create and share hyper-realistic videos. The company has incorporated safety measures, including parental controls, to address concerns about potential misuse.
