"It has been all good news for OpenAI this year. It reached a valuation of $500 billion. Its CEO, Sam Altman, stood next to President Trump in the White House early this year during the announcement of a new $500 billion Stargate AI infrastructure program. It settled a fight with Microsoft (its largest shareholder, with a 24% stake) over becoming a for-profit company. And it created financial partnerships with Oracle, Nvidia, Softbank, and AMD."
"Some outsiders worry about this high valuation, in part because OpenAI says it will not make money until 2030 and may have to raise hundreds of billions of dollars to cover losses and investments in AI data centers. OpenAI has held the lead in the artificial intelligence (AI) chatbot sector, a lead of as high as 80%. Moreover, it has led AI market share in the Apple App Store downloads."
OpenAI reached a $500 billion valuation and secured high-profile political and corporate partnerships, including a White House appearance tied to a $500 billion Stargate AI program and deals with Oracle, Nvidia, Softbank, and AMD. The company settled governance disputes with Microsoft and retains a leading share in AI chatbots and App Store downloads. Financial forecasts project no profit until 2030 and potential need to raise hundreds of billions for losses and data-center investment. Recent GPT-5 reception was tepid while competitor Gemini 3 has accelerated downloads. Oracle’s comparable valuation and strong earnings underscore valuation scrutiny and funding risk.
Read at 24/7 Wall St.
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