OpenAI is the world’s most valuable private company after private stock sale

OpenAI has successfully executed a stock sale amounting to $6.6 billion involving shares held by both current and former employees, as reported by Bloomberg. This significant transaction has propelled OpenAI’s total valuation to an astonishing $500 billion, marking a record for any privately-owned company. Among the buyers were notable investors such as SoftBank, Dragoneer Investment Group, Thrive Capital, MGX, and T. Rowe Price. Unlike traditional funding rounds where companies receive direct capital, this sale involved cash flowing to individuals with shares or options in OpenAI. This strategic move serves as an effective retention mechanism for OpenAI, especially amidst increasing competition from Meta’s revitalized AI division, which has recently attracted several top engineers from OpenAI with lucrative signing bonuses. The last major funding round for OpenAI occurred in August, where it raised $40 billion at a valuation of $300 billion. The same investors—SoftBank, Thrive, T. Rowe Price, and Dragoneer—along with private equity firms like Blackstone and TPG, and prominent venture capital firms such as Founders Fund, Sequoia Capital, and Andreessen Horowitz, participated in that round. This recent sale underscores OpenAI’s capability to generate substantial cash flow, a vital asset given the company’s ambitious plans for infrastructure. OpenAI has pledged to invest $300 billion in Oracle Cloud Services over the next five years, a figure that exceeds its current revenue and reserves. Nevertheless, the momentum from recent fundraising efforts suggests that this investment might be more feasible than it initially appears. In a strategic partnership, Nvidia recently announced an intention to invest $100 billion in OpenAI, further validating its financial prospects. This stock sale follows a non-binding agreement between OpenAI and Microsoft, which many observers believe could facilitate OpenAI’s transition into a for-profit entity, although this has yet to be confirmed in court. As OpenAI continues to innovate at a rapid pace, the company recently launched its latest Sora 2 video model and associated social media feed. Financially, OpenAI reported $4.3 billion in revenue in the first half of 2025, while expending $2.5 billion in cash.