Business

OpenAI overtakes SpaceX to become world’s most valuable start-up at US$500 billion

Employee-led secondary share sale drives AI firm’s valuation surge, as investors vie for stake in ChatGPT-maker’s future

Updated 10 months ago · Published on 02 Oct 2025 2:14PM

OpenAI overtakes SpaceX to become world’s most valuable start-up at US$500 billion
Meta Platforms has reportedly launched a concerted effort to poach researchers from OpenAI and other elite labs for its new superintelligence division - October 2, 2025

OPENAI has become the world’s most valuable start-up, surpassing SpaceX, following a secondary share sale that values the company at an estimated US$500 billion according to a source familiar with the transaction.

Bloomberg reported today that the deal saw current and former OpenAI employees sell approximately US$6.6 billion worth of shares to a consortium of investors that included Thrive Capital, SoftBank, Dragoneer Investment Group, Abu Dhabi’s MGX, and T. Rowe Price.

OpenAI, the developer behind ChatGPT, was previously valued at around US$300 billion following a US$40 billion funding round led by SoftBank Group. This latest transaction does not involve the issuance of new shares but instead provides liquidity for employees—both past and present—while strengthening investor confidence in the company’s long-term prospects.

"Though the company permitted the sale of over US$10 billion in shares, the total amount sold fell short of that ceiling," the source noted. "This is being interpreted as a sign of employee confidence in OpenAI’s future."

Secondary share sales are a common tool among major US start-ups to retain top talent, reward long-serving staff, and attract fresh capital without diluting existing equity. For OpenAI, the sale comes at a time when competition for artificial intelligence talent is intensifying.

Meta Platforms, the parent company of Facebook, has reportedly launched a concerted effort to poach researchers from OpenAI and other elite labs for its new superintelligence division, offering compensation packages reaching nine figures.

By enabling employees to realise part of their equity stakes, OpenAI may be hoping to fend off such lucrative offers and bolster internal morale amid rising industry rivalry. - October 2, 2025

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