"OpenAI has sold $6.6 billion in shares held by current and former employees, according to a new report from Bloomberg. The sale pushed OpenAI's total valuation to $500 billion, the highest ever achieved by a privately held company. Purchasers included SoftBank, Dragoneer Investment Group, Thrive Capital, MGX, and T. Rowe Price, the report said. The sale was not a conventional funding round, as the cash went to individuals holding shares or options in OpenAI rather than the company's own coffers."
"The sale is also a reminder of OpenAI's ability to raise cash as needed - a particularly important resource given the company's ambitious infrastructure plans. OpenAI has committed to spending $300 billion on Oracle Cloud Services over the next five years, a sum that vastly outstrips its current revenue or reserves. However, the powerful momentum of the company's fundraising suggests it's not as outlandish as standard arithmetic would indicate."
OpenAI sold $6.6 billion in shares held by current and former employees, raising its valuation to $500 billion and attracting investors such as SoftBank, Dragoneer, Thrive Capital, MGX, and T. Rowe Price. The transaction routed cash to individuals rather than to company coffers and served as a retention tool amid competition from Meta, which hired several top engineers with large signing bonuses. OpenAI previously completed a $40 billion fundraise at a $300 billion valuation. The company plans substantial infrastructure spending, including $300 billion with Oracle and a strategic Nvidia commitment, and faces questions about a possible conversion to a for-profit structure.
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