OpenAI is in early-stage discussions with investors regarding a secondary stock sale that could value the company at approximately $500 billion, according to multiple sources familiar with the matter. The proposed transaction would allow current and former employees to cash out several billion dollars’ worth of shares and would push OpenAI’s valuation beyond that of Elon Musk’s SpaceX—currently valued at around $400 billion—making it the most valuable private tech company in the world.

The potential sale, led by existing investors such as Thrive Capital, highlights OpenAI’s rapid growth since the launch of ChatGPT in late 2022, which established the company as a frontrunner in the generative AI space. The talks are still preliminary and confidential, with none of the parties publicly commenting on the details.

This proposed secondary offering follows OpenAI’s $40 billion primary funding round earlier this year, which valued the company at $300 billion. Led by SoftBank Group Corp., it marked one of the largest fundraisings ever for a private tech company. The second tranche of that round—totaling $8.3 billion—was secured ahead of schedule and oversubscribed by approximately five times.

OpenAI’s growth trajectory has been equally impressive in terms of revenue. The company doubled its annualized run rate to $12 billion in the first seven months of the year and is projected to hit $20 billion by year-end, up from $10 billion in June.

Meanwhile, the user base for ChatGPT continues to expand rapidly, with 700 million weekly active users, up from 500 million in March and 400 million in February. The app now sees over 3 billion messages exchanged daily.

The secondary share sale is seen as a way to reward employees, provide liquidity, and help OpenAI retain top talent amid fierce competition in the AI sector. Companies like Meta Platforms Inc. and Apple Inc. have been aggressively recruiting AI researchers with compensation packages reportedly reaching into the nine-figure range. Meta has even been investing billions into firms like Scale AI in an attempt to lure prominent figures such as CEO Alexandr Wang.

A successful stock sale could help OpenAI incentivize its employees to stay, especially as rivals poach staff for newly formed "superintelligence" teams. The move also positions the company for a potential initial public offering, as OpenAI continues to explore a corporate restructuring that would move away from its current capped-profit model.

On the technology front, OpenAI has maintained momentum with the release of two new open-weight AI models earlier this week — the company’s first open models since GPT-2 in 2019. These models are designed as low-cost, customizable options for developers and researchers. The company is also preparing for the release of its GPT-5 model, which is expected to further consolidate its leadership in the AI race.

In May, OpenAI announced plans to acquire the AI device startup co-founded by Apple’s former chief designer Jony Ive in a nearly $6.5 billion all-stock deal — signaling a push into the hardware space.

Despite its success, OpenAI is facing internal challenges related to its corporate structure and investor relationships. It is currently engaged in ongoing discussions about its for-profit model, particularly with major stakeholder Microsoft. These talks center around Microsoft's stake in a newly configured OpenAI entity and ensuring continued access to OpenAI’s intellectual property, especially before the current agreement expires in 2030.