OpenAI Becomes World’s Most Valuable Startup with $500 Billion Valuation

October 4, 2025

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Why In The News?

OpenAI has officially become the world’s most-valued startup, crossing the $500 billion valuation mark after enabling employees to sell shares, surpassing Elon Musk’s SpaceX in the process.

The valuation increase is closely tied to a share liquidity event allowing current and former employees to sell about $6.6 billion worth of stock.

Many investors are betting on OpenAI’s long-term dominance in generative AI as a key driver for the surge. The company was previously valued at $300 billion during a funding round led by SoftBank earlier this year.

OpenAI’s revenue trajectory is another factor fueling confidence. The company’s annual recurring income is projected to reach $20 billion by 2025.

Notably, NVIDIA has committed up to $100 billion in investments, with OpenAI agreeing to use significant compute capacity powered by NVIDIA’s AI chips.

Bloomberg’s Report

Bloomberg’s report suggests that this happened because employees and former staff sold about $6.6 billion worth of shares to big investors like SoftBank, T. Rowe Price, and Thrive Capital.

The money from this deal didn’t go directly to OpenAI but to the people who sold their shares.

This valuation leap is based on a secondary share sale, meaning the capital flowed to shareholders rather than directly into OpenAI as new funding.

The report also explains that investors are very excited about the future of artificial intelligence, and many don’t want to miss the chance to be part of OpenAI’s success.

Some experts believe the company might soon change its structure to become a fully for-profit business. Overall, Bloomberg suggests that OpenAI’s huge valuation shows how powerful and important AI has become in today’s world.

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