OpenAI Poised to Overtake SpaceX with Potential $500 Billion Valuation

OpenAI, the creator of ChatGPT, is in discussions with investors regarding a share sale that could value the company at $500 billion, according to a report by the Financial Times. If the deal materializes, OpenAI would surpass Elon Musk's SpaceX to become the world's highest-valued private technology company. The move comes as OpenAI continues its latest funding round led by SoftBank, aiming to raise $40 billion, which would give the company a $300 billion valuation. However, sources familiar with the matter indicate that OpenAI is already in talks with other investors, including Thrive Capital, to nearly double that valuation.

Secondary Market Share Sale Planned

OpenAI is planning to launch a secondary market share sale, allowing current and former employees to sell their stock holdings. The final valuation for the sale is yet to be determined, and the size of the share offering will depend on investor demand. However, sources suggest the sale could be significantly larger than the $1.5 billion employee share sale OpenAI conducted late last year. Both OpenAI and Thrive Capital have declined to comment on the news.

AI Fever Sweeping the Markets

These negotiations come at a time when the artificial intelligence field is experiencing a significant boom, with investors rushing to invest in companies that are likely to dominate this field in the future and achieve a market value of trillions of dollars. Since the launch of ChatGPT at the end of 2022, OpenAI's annual recurring revenue (ARR) has jumped to $12 billion. Financial experts predict that the company will achieve an ARR of $20 billion by the end of 2025.

Competition Intensifies

Meanwhile, Anthropic, OpenAI's main competitor, has quadrupled its annual recurring revenue to $4 billion and is currently seeking to raise at least $5 billion at a valuation of $170 billion. Despite rapid growth, both companies are still operating at a loss due to the high costs of training and operating advanced AI models. The market capitalization of major technology companies has seen a significant increase in recent days due to increased investment in the field of artificial intelligence.

Race for AI Tools

Giant technology companies are currently competing fiercely to develop AI tools that can generate texts, codes, or images based on user instructions. Anthropic announced this week a major upgrade in the programming performance of one of its main models. In response, OpenAI launched two "open weight" models that developers can download for free and customize as needed. In addition, OpenAI is expected to launch the highly anticipated GPT-5 model this month. These developments underscore the accelerating dynamics in the AI market and illustrate how companies are competing to innovate and attract investment in this vital field. AI's growth potential lies in its ability to automate tasks, personalize experiences, and drive innovation across industries. Factors like ethical considerations, data privacy, and potential job displacement will influence AI's long-term trajectory.