OpenAI Becomes World's Most Valuable Private Company at $500 Billion
OpenAI has concluded a significant secondary stock sale, valuing the company at a staggering $500 billion. This deal, involving several prominent investors, has made OpenAI the world's most valuable private company, surpassing SpaceX.
The sale, worth $6.6 billion, was participated in by notable investors such as Thrive Capital, SoftBank, Dragoneer Investment Group, MGX from Abu Dhabi, and T. Rowe Price, although the exact proportions of their shares remain undisclosed. This transaction has more than doubled OpenAI's valuation from $300 billion earlier this year.
The sale not only brings substantial liquidity to OpenAI's employees but also aids the company in its competition for talent with rivals like Meta. Meanwhile, OpenAI continues to face legal pressure from its co-founder, Elon Musk, despite lifting its capped-profit limit. In a separate development, OpenAI has formed a strategic infrastructure partnership with Nvidia, with the latter investing up to $100 billion in the collaboration.
OpenAI's latest valuation places it at the pinnacle of private companies, ahead of SpaceX. The secondary stock sale provides employees with much-needed liquidity, bolstering OpenAI's competitiveness in the talent market. The partnership with Nvidia further strengthens OpenAI's position in the tech landscape, despite ongoing legal challenges.
