Key Takeaways
- OpenAI is now valued at $500 billion, surpassing SpaceX as the world’s most valuable private startup.
- Employees sold $6.6 billion in shares to major investors, including SoftBank and T. Rowe Price.
- NVIDIA will invest up to $100 billion, supporting a 10-gigawatt AI infrastructure buildout.
- OpenAI is expanding U.S. data centers with Oracle and SoftBank under the $500 billion Stargate project.
OpenAI has reached a $500 billion valuation following a secondary share sale, overtaking Elon Musk’s SpaceX to become the world’s most valuable private startup.
According to a Bloomberg report, the AI startup allowed current and former employees to cash out part of their equity, selling approximately $6.6 billion worth of shares to major investors, including Thrive Capital, SoftBank Group Corp., Dragoneer Investment Group, Abu Dhabi’s MGX, and T. Rowe Price.
The deal marked a sharp increase from OpenAI’s previous $300 billion valuation set earlier this year during a SoftBank-led round.
While OpenAI had authorized over $10 billion in shares for sale, the final tally fell short, which may reflect employees’ confidence in the company’s future.
NVIDIA Commits $100 Billion to Fuel OpenAI’s AI Ambitions
The valuation milestone comes on the heels of a wave of high-stakes strategic moves by the San Francisco-based AI firm, including a landmark partnership with NVIDIA.
Under the agreement, OpenAI plans to deploy at least 10 gigawatts of GPU-powered systems, while NVIDIA has committed up to $100 billion in infrastructure investment as the rollout progresses, with the first phase expected to go live in 2026.
Additionally, as part of the arrangement, NVIDIA will take a nonvoting equity stake in OpenAI, allowing it to participate financially without gaining influence over corporate decisions.
Beyond the financial commitment, the two companies will work closely to align their future development plans, ensuring that OpenAI’s evolving software needs are matched by NVIDIA’s next generation of AI chips and systems.
OpenAI, Oracle, and SoftBank Scale Up U.S. AI Infrastructure
Separately, OpenAI, Oracle, and SoftBank have unveiled five new U.S. data center sites as part of the $500 billion Stargate AI project, which is aimed at supporting the next generation of artificial intelligence model development.
The venture brings together Oracle’s cloud computing capabilities, SoftBank’s expertise in energy systems and data center design, and OpenAI’s rapidly growing need for computational power.
The new facilities are being established in Texas, New Mexico, Ohio, and a yet-to-be-disclosed location in the Midwest.
At the lead site in Abilene, Texas, early training workloads for OpenAI’s upcoming models are already underway, marking the first phase of what the companies describe as a long-term national infrastructure buildout.
OpenAI Eyes Shift to Profit Model, Backed by Microsoft
Founded in 2015 as a nonprofit research lab, OpenAI is in talks with Microsoft Corp. to formally transition into a public benefit corporation, a move that has drawn scrutiny from Musk, who has accused the company of abandoning its original mission.
Despite such tensions, OpenAI’s technology continues to gain global traction, with over 700 million weekly active users and expanding enterprise adoption.
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