OpenAI, the creator of ChatGPT, is reportedly in early talks for a private stock sale that would let employees cash out shares, potentially valuing the company at about $500 billion—up significantly from its current $300 billion valuation. The transaction, which would occur before any initial public offering (IPO), aims to allow current and former employees to sell several billion dollars worth of shares.
The move highlights OpenAI’s rapid growth, driven by its flagship ChatGPT product, which has doubled revenue in the first seven months of 2025 to an annualized run rate of $12 billion, with projections to reach $20 billion by year-end. OpenAI now boasts about 700 million weekly active users, up from 400 million in February.
This potential share sale follows a primary funding round announced earlier this year targeting $40 billion, led by Japan’s SoftBank Group, which is obligated to fund $22.5 billion by year-end. The remaining portion of the round has already been subscribed at the current $300 billion valuation.
Amid fierce competition for AI talent, tech giants like Meta are investing billions in startups such as Scale AI to secure top executives, underscoring the high stakes in the AI race. Other private companies like ByteDance and Databricks have similarly used private share sales to refresh valuations and reward employees.
Existing OpenAI investors, including Thrive Capital, are reportedly considering participation in the employee share sale. Thrive Capital declined to comment.
OpenAI is also planning a significant corporate restructuring to move away from its capped-profit model, paving the way for a potential future IPO. However, CFO Sarah Friar emphasized that any public offering would only occur when both the company and market conditions are favorable.