OpenAI becomes the world’s most valuable startup

OpenAI has finalized a deal selling employees’ shares to investors, valuing the artificial intelligence company at $500 billion.

The transaction makes the ChatGPT maker the world’s most valuable privately held company, surpassing Elon Musk’s SpaceX valued at $400 billion.

Major investors joined in, current and former OpenAI employees sold roughly $6.6 billion in shares to investors, including SoftBank, Thrive Capital, Dragoneer, MGX, and T. Rowe Price.

Nvidia also invested $10 billion, securing about a 2% stake in the company.

In March, the company was valued at $300 billion.

AI investment boom
The surge reflects growing frenzy around AI technology, which promises to reshape industries globally. 

OpenAI has partnered with Oracle and SK Hynix while building data centers alongside Nvidia to scale AI services. Though not yet profitable, the company is driving a global AI infrastructure boom.

The company faces stiff competition from Google, Anthropic, and Meta, which are aggressively recruiting AI talent. 

To retain employees, it is offering liquidity through secondary share sales and launching powerful AI models, including GPT-5, to maintain its technological edge. 

Planned changes may convert OpenAI into a for-profit entity while preserving a public benefit mission.

Meanwhile, founder Elon Musk has filed a lawsuit to block the restructuring.