Key Takeaways
- OpenAI: A Potential $500 billion valuation would make it the world’s most valuable private tech firm, surpassing SpaceX.
- Employee share sales are hoped to retain top AI talent amid fierce competition from Meta and other AI-tech firms.
- ChatGPT now boasts 700 million weekly users, with revenue projected to hit $20B by year-end.
- Global regulators are very concerned about Worldcoin’s iris-scanning tech, to the point of banning the project in some countries.
Table of Contents
A Dreamed Valuation
OpenAI is in talks to potentially finalize what may be the most unbelievable private market transaction in Silicon Valley history: a $500 billion valuation through an employee stock sale. This represents a 66% increase off the already heady $300B, and it would eclipse SpaceX’s $400B valuation.
The transaction is being coordinated by Thrive Capital in a way that allows early OpenAI employees to cash out tens of billions of dollars while continuing to delay a traditional Initial Public Offering (IPO).
Two years ago, these dollar amounts would have been science fiction. With $12B in annualized revenue, and ChatGPT adding another 300M users since last February, the hype seems reasonable. And pampered by these users, the growth does not appear to be slowing down any time soon, even when they are threatened by xAI’s recent growth and future projections.
Talent Battles and Ethics Dilemmas
The share sale may also be a defensive tactic, because what’s happening out there is truly a brutal talent war in the AI field. After Meta took multiple employees from OpenAI with $100M packages, Altman is seeking golden handcuffs to retain his team, but the situation is awkward.
China just banned iris-scanning crypto projects like Worldcoin (Altman’s other project). The EU is investigating the collection of biometric data. Ethicists are concerned that such projects not only don’t protect privacy but actually enable mass surveillance.
OpenAI is aiming to mint billions while Worldcoin eyeball scans the world’s underprivileged population. A two-headed snake danger play.
The Way Forward
OpenAI trajectory faces significant questions despite its seemingly limitless growth, marked by the release of GPT-5 and a $30 billion funding round. These challenges include retaining top talent and going through increased regulatory inspections, particularly in regard to the Worldcoin scandal. This situation highlights the inherent tension in the modern AI paradox: immense value creation coupled with substantial risk.
Final Thought: Can OpenAI maintain its lightning growth while cleaning up Worldcoin’s mess? Or will ethical concerns cap its ascent? The next few months will tell.
For more OpenAI-related stories, read: OpenAI Expands Into US Government Sector with $200M Defense Agreement
