"OpenAI has completed a deal to help employees sell shares in the company at a $500 billion valuation, propelling the ChatGPT owner past Elon Musk's SpaceX to become the world's largest startup. Current and former OpenAI employees sold about $6.6 billion of stock to investors including Thrive Capital, SoftBank Group Corp., Dragoneer Investment Group, Abu Dhabi's MGX and T. Rowe Price, a person familiar with the transaction said. That boosted the US company's price tag well past its previous $300 billion level"
"That rapid rise underscores the investment frenzy surrounding the leaders of a technology with the potential to transform industries and economies. Sam Altman's OpenAI is one of several companies including Nvidia Corp. now leading a global push to build data centers and develop artificial intelligence services, an undertaking that's expected to cost trillions of dollars. Though it has yet to turn a profit, the US startup is helping fuel that infrastructure boom by inking mega-sized deals with the likes of Oracle Corp. and SK Hynix"
OpenAI completed a transaction enabling employees to sell shares that valued the company at $500 billion. Current and former employees sold about $6.6 billion of stock to investors including Thrive Capital, SoftBank Group, Dragoneer, Abu Dhabi's MGX and T. Rowe Price. The valuation jumped from roughly $300 billion earlier in the year to $500 billion, surpassing SpaceX's $400 billion. The rise reflects heavy investment in artificial intelligence and a global push to build data centers and AI services, an effort expected to cost trillions. OpenAI has signed large deals with Oracle and SK Hynix and is negotiating a change to a for-profit public benefit structure.
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