OpenAI Surpasses SpaceX as World's Most Valuable Private Company

OpenAI, the San Francisco-based artificial intelligence research organization, has completed a secondary share sale totaling $6.6 billion, elevating its valuation to $500 billion. This milestone positions OpenAI as the world's most valuable privately held company, surpassing SpaceX's valuation of $456 billion.

The transaction allowed current and former OpenAI employees to sell their shares to a consortium of prominent investors, including Thrive Capital, SoftBank Group Corp., Dragoneer Investment Group, Abu Dhabi's MGX, and T. Rowe Price. While OpenAI had authorized up to $10.3 billion in shares for sale, only about two-thirds of that amount was ultimately sold. This lower participation rate is viewed internally as a vote of confidence in the company's long-term prospects, indicating that many employees prefer to retain their equity.

Founded in 2015 as a nonprofit dedicated to advancing artificial intelligence for the benefit of humanity, OpenAI transitioned to a "capped-profit" model to attract more capital while maintaining its mission. The organization is renowned for developing advanced AI models, including the GPT series, which have significantly influenced the AI industry.

In the first half of 2025, OpenAI reportedly generated $4.3 billion in revenue, surpassing its total earnings from the entire previous year by 16%. Despite this impressive growth, the company is reportedly operating at a loss, with revenue estimates around $12 billion annually.

The substantial valuation also positions OpenAI ahead of other major private companies, such as SpaceX and ByteDance, highlighting the significant impact of AI advancements on market valuations.

OpenAI has engaged in strategic partnerships to bolster its infrastructure and capabilities. Notably, Nvidia CEO Jensen Huang has publicly declared his belief that OpenAI is on course to become a multi-trillion-dollar company, describing it as potentially the fastest-growing hyperscaler in history. This ambition is backed by a monumental $100 billion commitment from Nvidia to support AI infrastructure through a new agreement with OpenAI.

The rapid valuation growth of OpenAI underscores the increasing influence of AI technologies in various sectors, from healthcare to finance. While this presents opportunities for innovation and efficiency, it also raises questions about market stability, ethical considerations, and the potential for an investment bubble in the AI sector.

OpenAI's ascent to a $500 billion valuation marks a significant milestone in the AI industry, reflecting both the immense potential and the challenges inherent in this rapidly evolving field. As the company continues to expand its influence and capabilities, stakeholders must navigate the complex landscape of technological innovation, market dynamics, and societal impact.