OpenAI is the world's most valuable private company after private stock sale

TechCrunch
TechCrunch
3M ago
44 views
OpenAI's recent share sale valued the company at $500 billion, making it the highest-valued private firm, amid competitive pressures from Meta.
OpenAI is the world's most valuable private company after private stock sale
A What happened
OpenAI has achieved a valuation of $500 billion after selling $6.6 billion in shares held by employees and investors, according to Bloomberg. This sale was not a typical funding round, as the proceeds went directly to individuals rather than the company. The move is seen as a strategy to retain talent, especially after Meta's aggressive recruitment of OpenAI engineers. OpenAI's previous funding round in August raised $40 billion at a $300 billion valuation, with significant investments from firms like SoftBank and T. Rowe Price. The company is also planning to invest $300 billion in Oracle Cloud Services over the next five years, indicating its ambitious infrastructure goals. Despite a cash burn of $2.5 billion, OpenAI reported $4.3 billion in revenue in the first half of 2025, showcasing its financial viability.

Key insights

  • 1

    Record Valuation: OpenAI's valuation reaches $500 billion, the highest for a private company.

  • 2

    Talent Retention Strategy: Share sale aimed at retaining employees amid competition from Meta.

  • 3

    Infrastructure Investment: OpenAI commits $300 billion to Oracle Cloud Services over five years.

Takeaways

OpenAI's financial maneuvers reflect its strategic positioning in a competitive AI landscape.

Topics

Technology & Innovation Artificial Intelligence