"OpenAI could now be the world's most valuable startup, ahead of Elon Musk's SpaceX and TikTok's parent company ByteDance, after a secondary stock sale designed to retain employees at the ChatGPT maker. Current and former OpenAI employees sold $6.6 billion in shares to a group of investors, pushing the privately held artificial intelligence company's valuation to $500 billion, according to a source with knowledge of the deal who was not authorized to discuss it publicly."
"He added that "we'll make some dumb capital allocations" and there will be short-term ups and downs but that "over the arc that we have to plan over, we are confident that this technology will drive a new wave of unprecedented economic growth," along with scientific breakthroughs, improvements to quality of life and "new ways to express creativity.""
OpenAI completed a $6.6 billion secondary stock sale by current and former employees to a group of investors, valuing the company at $500 billion. Buyers included Thrive Capital, Dragoneer Investment Group, T. Rowe Price, SoftBank, and the UAE's MGX. The valuation places OpenAI ahead of other private tech giants such as SpaceX and ByteDance. The company remains unprofitable, raising concerns about a possible AI investment bubble if generative AI products fail to meet investor expectations. CEO Sam Altman acknowledged likely booms and busts but expressed confidence that AI will drive major economic growth, scientific advances, quality-of-life improvements, and new forms of creativity.
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