OpenAI’s Valuation Soars to USD 500 Billion After Secondary Share Sale

OpenAI’s recent valuation has skyrocketed to USD 500 billion following a USD 6.6 billion secondary share sale, giving employees the opportunity to cash out while signalling investor confidence in the AI pioneer’s long-term prospects. Unlike primary funding rounds, no new capital was raised—the deal simply allowed existing and former employees to sell their stock to outside investors.

Key Highlights

• Valuation: USD 500 billion (based on the secondary sale).

• Transaction Type: Secondary sale—employees selling shares to investors; no direct funding for OpenAI.

• Major Buyers: Thrive Capital, SoftBank, Dragoneer Investment Group, and T. Rowe Price.

• Revenue: Approximately USD 4.3 billion reported in the first half of 2025.

• Infrastructure Plan:Stargate—a proposed 10 GW data centre project over four years, potentially requiring up to USD 500 billion, with Oracle and SoftBank as partners.

• Relative Valuation: Exceeds SpaceX’s reported USD 400 billion and marks a jump of nearly USD 300 billion for OpenAI in just a few months.

• Competition: Anthropic identified as a rising competitor.

The USD 500 billion valuation is based on just a 1.3% equity block, highlighting that this deal is more of a market signal than a capital infusion. Still, the number underscores how strongly investors are betting on OpenAI’s future monetisation rather than its current financial performance.

At this level, OpenAI is valued at 58x its projected annual run-rate revenue (USD 8.6 billion)—an extraordinary multiple that reflects investor belief in the company’s dominance in general-purpose AI and enterprise adoption.

A significant driver behind the bullish valuation is Stargate, OpenAI’s ambitious plan to build 10 GW of data-centre capacity in four years. Reports suggest the investment may total USD 500 billion, backed by strategic partners Oracle and SoftBank.

This push underscores the capital intensity of scaling large language models, which require vast amounts of compute, power, cooling, and real estate. If realised, Stargate could position OpenAI as a critical infrastructure player in the AI era.

Drivers Behind

• Enterprise Adoption: High demand for ChatGPT Enterprise and API services.

• Strategic Alliances: Partnerships with Oracle and SoftBank to scale compute capacity.

• Investor Sentiment: Willingness to pay premiums for AI platforms that can be embedded into enterprise processes.

Risks and Challenges

• Sustained Enterprise Growth: Can OpenAI convert early adoption into long-term, high-margin contracts?

• Capital Demands: Execution of the Stargate project requires immense funding and flawless implementation.

• Competitive Pressure: Rivals like Anthropic continue to raise capital and launch differentiated models.

• Valuation Fragility: A 58x revenue multiple leaves little room for error.

The USD 500 billion valuation of OpenAI is symbolic yet staggering, a product of investor belief rather than new capital inflow. It highlights confidence in OpenAI’s enterprise adoption, bold infrastructure expansion, and long-term market dominance. Whether this lofty valuation holds will depend on how effectively OpenAI transforms adoption into durable, profitable enterprise contracts while executing on the colossal Stargate project.