Openai wraps $6.6 billion in stock sales at a valuation of $500 billion

Openai has completed a total of $6.6 billion in secondary stock sales, allowing current and former employees to sell their shares at a record valuation of $500 billion, according to those familiar with the transaction.

Bloomberg was the first to report that the deal had been closed.

CNBC is considering openingai to sell secondary stocks at a $500 billion valuation in August, including Thrive Capital, Softbank, Dragoneer Investment Group, Abu Dhabi’s MGX and T. We reported with investors such as RowePrice.

Openai had allowed sales of up to $10.3 billion, but increased from its original $6 billion target, but in the end, only about two-thirds of that amount changed hands.

The person who described the internal debate said lower participation was seen as a vote of confidence in the company’s long-term outlook, indicating that investors’ appetite remains strong even at a $500 billion valuation, which rose sharply from the $300 billion earlier this year.

The offer was presented to eligible current and former employees in early September, opening up participation to those who had held shares for more than two years.

The stock sale marks Openai’s second major public purchase in less than a year after signing a $1.5 billion deal with SoftBank in November.

This latest transaction bolsters Openai’s status as the world’s most valuable private company, surpassing SpaceX’s valuation of $456 million.

This sale is also intensifying competition for AI talent. Metain particular, it reportedly provided a nine-digit compensation package to recruit top researchers.

Openai is one of a growing cohort of well-known startups, including SpaceX, Stripe and Databricks. This move is widely seen as a strategy that will help retain talent and reward long-term employees without pursuing an IPO.

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