OpenAI has completed a $6.6 billion share sale, valuing the company at $500 billion, making it the most valuable private entity globally. The sale, involving current and former employees' shares, attracted investments from SoftBank, Dragoneer Investment Group, Thrive Capital, MGX, and T. Rowe Price.
This move serves as a robust retention strategy amidst competition from Meta, which has been actively recruiting OpenAI's talent. OpenAI's recent activities include a $40 billion fundraise at a $300 billion valuation in August, with participation from similar investors alongside Blackstone, TPG, Founders Fund, Sequoia Capital, and Andreessen Horowitz.
The company's significant infrastructure commitments, including a $300 billion pledge to Oracle Cloud Services and a potential $100 billion investment from Nvidia, highlight its aggressive expansion plans. These developments follow a non-binding agreement with Microsoft, potentially paving the way for OpenAI's conversion into a for-profit entity, although the share sale could complicate this transition.
OpenAI reported $4.3 billion in revenue in the first half of 2025 while burning through $2.5 billion in cash, showcasing its rapid growth and investment in new technologies like the Sora 2 video model.