OpenAI Reportedly Plans Internal Equity Sale at a Valuation of $500 Billion: Allowing Employees to Cash Out Amid the AI Talent Acquisition Battle

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5,000 Billion Dollar Valuation

According to multiple informed sources cited by Bloomberg, the artificial intelligence development company OpenAI is in early negotiations with investors regarding a round of internal stock sales, with the company’s valuation possibly reaching 500 billion dollars. This transaction will allow both current and former employees to sell their shares.

Reports indicate that existing investors such as Thrive Capital are in discussions to participate in this round of transactions, although specific details have yet to be finalized. This will be a non-dilutive transaction, meaning it will not dilute existing shares, but is expected to provide OpenAI employees with substantial financial returns, especially against the backdrop of tech giants like Meta aggressively recruiting AI talent with high salaries, which has significant strategic implications.

On the other hand, OpenAI’s main competitor, Anthropic, is also negotiating a new funding round valued between 3 billion and 5 billion dollars, led by Iconiq Capital, with a valuation potentially rising to 170 billion dollars, far exceeding the 61.5 billion dollars from March, indicating that the capital market’s enthusiasm for top AI startups remains strong.

Annual Revenue Approaching 20 Billion Dollars

Since the launch of ChatGPT at the end of 2022, OpenAI’s valuation has soared, and in March of this year, it announced the completion of a massive funding round valued at 300 billion dollars, totaling 40 billion dollars. Last week, OpenAI further announced that it had received an additional 8.3 billion dollars in funding. According to CNBC, OpenAI anticipates that its annual recurring revenue (ARR) will exceed 20 billion dollars by the end of this year, significantly higher than the 10 billion dollars projected in June, highlighting the rapidly unleashing commercial potential of the generative AI market.