OpenAI Engages in Preliminary Discussions for Stock Sale Worth $6 Billion at Tentative $500 Billion Valuation

OpenAI is currently exploring the possibility of conducting a secondary stock sale amounting to approximately $6 billion, which would place its valuation around a formidable $500 billion, a credible report from CNBC confirmed on Friday.

The transaction aims to dispose of shares held by both current staff and alumni, with prominent participants such as SoftBank, Dragoneer Investment Group, and Thrive Capital showing interest, as per an insider familiar with the discussions, who chose to remain anonymous due to the delicate nature of the negotiations. As these discussions are in the nascent stages, specific aspects may evolve.

It was a significant source that initially revealed these conversations. Among OpenAI's existing investors, Thrive Capital could potentially spearhead this funding round. However, there hasn't been immediate feedback to CNBC's inquiries from SoftBank, Dragoneer, or Thrive Capital.

OpenAI's market valuation has seen a dramatic rise since the introduction of its innovative AI chatbot, ChatGPT, towards the end of 2022.

Earlier this year, in March, OpenAI secured a substantial funding round valuing the entity at a record-setting $300 billion, marking the largest funding ever procured by a private technology firm. Recently, OpenAI made public its latest injection of fresh capital tied to this substantial funding round.

Just last week, OpenAI unveiled its latest and most sophisticated large-scale AI model. The company claims this model is superior in efficiency and intelligence, significantly benefiting areas such as writing, programming, and healthcare. However, the rollout has faced some challenges, with user dissatisfaction stemming from the inability to access previous OpenAI models.

Sam Altman, OpenAI's CEO, acknowledged the issue stating, "We certainly underestimated the value users placed on certain aspects of GPT-4 even though GPT-5 boasts improved performance in various facets," in a post on X.