OpenAI targets $500 billion valuation ahead of potential IPO
Backed by Microsoft, OpenAI has surged to 700 million weekly users, driving revenue growth and sparking $500 billion valuation discussions.
OpenAI is in early discussions over a share sale that could value the company at around $500 billion, according to a source familiar with the talks.
The transaction would occur before a possible IPO and let current and former employees sell several billion dollars’ worth of shares.
The valuation marks a steep rise from the $300 billion figure attached to its most recent funding round earlier in the year. Backed by Microsoft, OpenAI has seen rapid growth in users and revenue, with ChatGPT attracting about 700 million weekly active users, up from 400 million in February.
Revenue doubled in the first seven months of the year, reaching an annualised run rate of $12 billion, and is on track for $20 billion by year-end.
The potential sale comes as competition for AI talent intensifies.
Meta has invested billions in Scale AI to lure its chief executive, Alexandr Wang, to head its superintelligence unit. At the same time, firms such as ByteDance and Databricks have used private share sales to update valuations and reward staff.
Thrive Capital and other existing OpenAI investors are discussing joining the deal.
OpenAI is also preparing a major corporate restructuring that could replace its capped-profit model and clear the way for an eventual public listing.
However, Chief Financial Officer Sarah Friar said any IPO would only happen when the company and the markets are ready.
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