OpenAI could see valuation upgrade to $500B as employees seek to sell $6B in shares

OpenAI’s current and former staffers are working to offload close to $6 billion in shares of the ChatGPT developer to an investor group including SoftBank Group, Thrive Capital, and Dragoneer Investment Group.

The share sales could be done at a raised company valuation to $500 billion, up from its current $300 billion. However, according to sources, discussions are still preliminary, meaning the deal value could change.

Softbank is committed to leading a financing round 

Besides the possible share purchase, SoftBank agreed to front OpenAI’s $40 billion fundraising round, which has already drawn in $8.3 billion from investors. Moreover, according to sources, the Japanese firm had already struck a $1 billion deal to buy an employee’s shares before negotiations over the secondary valuation commenced.

Representatives for Dragoneer, Thrive, and Softbank have yet to give an official statement on the secondary share sale. Nevertheless, all three firms are OpenAI backers. 

The share sale is set to provide more liquidity for OpenAI’s workers at a time when tech companies are poaching for AI talent. Tech giants such as Meta have been offering hefty compensation and benefits to pull in staffers from AI firms. Several employees, including ChatGPT co-creator Shengjia Zhao, have already left this year.

For startups, employee share sales can be a great retention strategy, seeing that they can avoid going through an IPO or acquisition. Typically, sale offers extend to early investors looking to lighten their positions. However, in OpenAI’s case, only current and past employees with two or more years at the company are eligible.

If a deal is finalized, the $500 billion price tag would rank OpenAI as the most valuable startup globally, surpassing SpaceX. The company estimates it could rake in nearly $13 billion in 2025, at least triple 2024’s earnings.

OpenAI introduced its new GPT-5 model

Just recently, OpenAI launched its new GPT-5 model. However, the model’s release drew criticism from analysts who found it less intuitive, leading the firm to reinstate GPT-4 for its paying customers.

SoftBank Group founder and CEO Masayoshi Son and OpenAI co-founder and CEO Sam Altman recently emphasized the rising demand for AI-driven systems.

The surge in interest is pushing AI companies to accelerate the development of advanced computing power. Speaking during a video conference at SoftBank World, industry leaders outlined strategies for weaving AI into business operations. Some participants noted that progress in AI could create more job opportunities.

They also pointed to the benefits of developing robotics, calling it a potential game-changer that could kickstart a new cycle of self-sustaining innovation. Son and Altman held an in-depth discussion on AI, where Son questioned the diminishing returns of further expansion. Altman responded that lowering the cost of AI would drive higher adoption.

He explained that if AI became ten times cheaper, demand could increase thirtyfold—or even more. The global appetite for AI is immense, the OpenAI CEO emphasized.

The exchange occurred before an audience of Japanese entrepreneurs and industry leaders, with the central theme revolving around self-propagating innovation.

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