OpenAI staff looking to sell $6 billion in stock to SoftBank, others, source says

By Juby Babu

(Reuters) -Current and former employees of OpenAI are looking to sell nearly $6 billion worth of the ChatGPT maker’s shares to investors including SoftBank Group and Thrive Capital, a source familiar with the matter told Reuters on Friday.

The potential deal would value the company at $500 billion, up from $300 billion currently, underscoring both OpenAI’s rapid gains in users and revenue, as well as the intense competition among artificial intelligence firms for talent.

SoftBank, Thrive and Dragoneer Investment Group did not immediately respond to requests for comment. All three investment firms are existing OpenAI investors.

Bloomberg News, which had earlier reported the development, said discussions are in early stages and the size of the sale could change.

The secondary share sale investment adds to SoftBank’s role in leading OpenAI’s $40 billion primary funding round.

Bolstered by its flagship product ChatGPT, OpenAI doubled its revenue in the first seven months of the year, reaching an annualized run rate of $12 billion, and is on track to reach $20 billion by the end of the year, Reuters reported earlier in August.

Microsoft-backed OpenAI has about 700 million weekly active users for its ChatGPT products, a surge from about 400 million in February.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.Should you invest $2,000 in MSFT right now?

With MSFT making headlines, savvy investors are asking: Is it truly valued fairly? In a market full of overpriced darlings, identifying true value can be challenging. InvestingPro's advanced AI algorithms have analyzed MSFT alongside thousands of other stocks to uncover hidden gems. These undervalued stocks, potentially including MSFT, could offer substantial returns as the market corrects. In 2024 alone, our AI identified several undervalued stocks that later surged by 30 or more. Is MSFT poised for similar growth? Don't miss the opportunity to find out.

Reveal Undervalued Stocks Now