With ChatGPT’s explosive growth, SoftBank’s massive backing, and plans for broader AI model access, OpenAI positions itself as the world’s most valuable private tech firm — edging closer to IPO readiness.
OpenAI, the Microsoft-backed AI powerhouse behind ChatGPT, is reportedly in early talks for a new stock sale that could skyrocket its valuation to $500 billion, potentially dethroning SpaceX as the world’s most valuable privately held tech company. This proposed move would almost double OpenAI’s current valuation of $300 billion and allow employees to cash out some of their equity while signaling continued investor confidence in OpenAI’s dominance in the AI race.
From $300B to $500B: A Breakneck Climb
This sharp valuation increase underscores the world’s insatiable demand for advanced AI tools. OpenAI’s rapid ascent has been fueled by the wild success of ChatGPT, now reportedly generating an annualized revenue run rate of $12 billion, with projections pushing that figure to $20 billion by year-end. The platform’s user base has exploded as well — growing from 400 million to 700 million weekly active users in just a few months.
This remarkable growth has intensified investor interest and pushed OpenAI’s valuation closer to historic highs for private tech firms.
SoftBank’s $22.5 Billion Play
The stock sale talks follow the announcement of a $40 billion funding round, with SoftBank Group committing up to $22.5 billion of the total. The remaining funds have already been raised at the existing $300 billion valuation. This deal could reshape the power dynamics in the global AI market, particularly if SoftBank delivers on its massive stake.
Thrive Capital and other backers are also reportedly exploring participation in this employee-focused secondary sale, which may surpass last year’s $1.5 billion transaction.
SpaceX in the Rearview
If the $500 billion valuation is secured, OpenAI would leapfrog Elon Musk’s SpaceX, which currently holds an estimated valuation of $400 billion. This would make OpenAI the most valuable private tech company in the world — a symbolic milestone in the ongoing AI-versus-aerospace race for innovation dominance.
The AI sector has become the hottest battleground for global tech giants, and OpenAI’s momentum is forcing competitors to accelerate their moves. Meta, for example, is reportedly investing billions in Scale AI and even attempting to lure its CEO, Alexandr Wang, for a new superintelligence initiative.
Preparing for IPO Territory
While OpenAI has not confirmed any immediate IPO plans, the company is undergoing a major structural shift from its current capped-profit model — a move CFO Sarah Friar says is essential before considering going public. Secondary share sales like this often serve as precursors to an IPO, allowing companies to test market appetite while rewarding employees.
Opening the AI Toolbox
In addition to the valuation news, OpenAI has released two new AI models — gpt-oss-120b and gpt-oss-20b — marking its first open model release since ChatGPT. Although not fully open-source, these models can be run locally by developers, offering more flexibility and transparency compared to OpenAI’s traditionally closed systems.
CEO Sam Altman described the release of gpt-oss as “a big deal,” noting the models achieve real-world reasoning on par with some of OpenAI’s smaller commercial offerings — and can even run on personal devices. The release had been delayed to allow for additional safety tests, including adversarial misuse scenarios and biosecurity assessments, with findings reviewed by external experts.
