More Valuable Than SpaceX? OpenAI Might Be

OpenAI, the company behind ChatGPT, is in early talks for a stock sale that could value it at a staggering $500 billion, Reuters reported, citing sources familiar with the matter.

The proposed deal would allow existing and former employees to cash out some of their shares, with major investors like Thrive Capital reportedly interested in participating. If finalized, the deal would nearly double OpenAI’s valuation since March and push it ahead of SpaceX to become the most valuable privately held tech company in the world.

Backed by Microsoft and at the center of the AI boom, OpenAI has become a household name thanks to ChatGPT. The company has reportedly reached 700 million weekly active users and has doubled its revenue in just seven months, now on track for $20 billion in annualized revenue by year’s end.

It also recently released two new open AI models that run on local devices, aiming to compete globally with rivals from China.

Still, some analysts are warning of a potential tech bubble echoing the dot-com era.