OpenAI is in discussions for a secondary share sale projected to raise its valuation to $500 billion, significantly up from its current estimated value of $300 billion. This type of transaction allows existing shareholders, including current and former employees, to sell shares without the company profiting directly. Previous sales began around the launch of ChatGPT, which was valued at $20 billion in November 2022. Recent revenue growth—from $10 billion to $13 billion—underpins this potential valuation bump, with forecasts suggesting a leap to $20 billion by year-end. The anticipated release of the GPT-5 model may also drive investor interest. However, its development faced challenges, including data acquisition issues and hardware failures. OpenAI currently boasts around 700 million weekly active users, up from 400 million earlier this year, amid fierce competition for AI talent in the industry. Other AI firms like Anthropic and Mistral AI are also pursuing significant funding rounds.
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