OpenAI has completed a transaction enabling employees to sell shares at a $500 billion valuation, elevating the ChatGPT maker above Elon Musk’s SpaceX to the top of the startup world.

In this secondary share sale, current and former OpenAI employees offloaded approximately $6.6 billion in stock to investors such as Thrive Capital, SoftBank, Dragoneer, Abu Dhabi’s MGX, and T. Rowe Price.

That move propelled the company’s implied value well beyond its prior $300 billion estimate from an earlier SoftBank-led funding round.

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The Momentum Behind the Surge

This sharp increase underlines the investment fervour surrounding AI companies perceived to be shaping the future of global industries and economies.

Although OpenAI has not yet posted sustained profits, it is fuelling the infrastructure expansion by signing substantial deals with firms like Oracle and SK Hynix.

Spokespersons for Thrive Capital, Dragoneer, MGX, and T. Rowe Price did not respond to comment requests. OpenAI and SoftBank also declined to issue statements.

A Milestone Amid Structural Shifts

The new valuation surpasses SpaceX’s estimated $400 billion valuation, marking a landmark moment for OpenAI.

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This occurs while OpenAI is negotiating with Microsoft to transition into a more traditional for-profit structure. Under the plan, the existing nonprofit entity would control a new public benefit corporation.

Founding Tensions and Strategic Stakes

Sam Altman and Elon Musk, once co-founders, have publicly diverged over AI’s risks and the company’s direction.

Musk has filed legal action, accusing OpenAI of straying from its original nonprofit mission after accepting substantial funding from Microsoft, which began investing in 2019.

Facing Competition and Talent Challenges

OpenAI is under pressure from rivals like Google and Anthropic, both of which are aggressively raising capital and vying for AI talent.

To defend its lead, the company has rolled out new open models capable of human-like reasoning. In August, it launched GPT-5, its most powerful model yet, aimed at cementing its edge in a crowded AI landscape.

In the long run, continued competition and the struggle to retain and attract top researchers may define OpenAI’s trajectory.