OpenAI has entered early discussions to launch a new share sale that would allow current and former employees to cash out their holdings. If the plan goes through, the company’s valuation could rise to $500 billion, up from its current $300 billion.
This move highlights the growing competition among tech companies to attract top AI talent. The share sale is expected to take place before a potential IPO (Initial Public Offering).
OpenAI aims to raise $40 billion in this funding round, led by SoftBank Group. Of this, $22.5 billion is expected to be secured by the end of this year.
With the rapid rise of ChatGPT, OpenAI's annual revenue has doubled to $12 billion, and it’s projected to reach $20 billion by year-end. ChatGPT’s weekly active users have also jumped to 700 million, up from 400 million in February.
Tech giants are fiercely competing to hire AI experts. For example, Meta is reportedly investing billions to recruit Alexander Wang, the 28-year-old CEO of Scale AI.
Looking ahead, OpenAI plans to move away from its limited-profit structure and eventually go public. However, CFO Sarah Friar stated that this will only happen when the company and the market are fully ready.
