OpenAI Boosts Secondary Share Sale to a Record-Breaking $10.3 Billion
OpenAI has significantly expanded its secondary share sale to an astounding $10.3 billion, marking a significant increase from an initial target of $6 billion. This transaction places the artificial intelligence company’s value at an unprecedented $500 billion.
The sale provides an opportunity for current and former employees who have held shares for more than two years to sell their equity to new investors. The massive surge in valuation from $300 billion earlier this year to $500 billion signifies one of the largest private company valuations in history.
The transaction has drawn the attention of major investors, including:
- SoftBank
- Thrive Capital
- Dragoneer Investment Group
- Abu Dhabi’s MGX
- T. Rowe Price
Employees have until the end of September to decide whether to participate in the sale, with the transaction expected to close in October. This move mirrors OpenAI’s strategy to provide liquidity to its workforce while sidestepping the pressures of going public, a tactic similarly employed by other high-valued tech companies like SpaceX and Stripe.
Source: CNBC