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OpenAI’s $500 billion valuation was implied by a reported 2025 sale of about $6.6 billion in shares held by current and former employees. It was a private secondary transaction—not a public-market price, and not $6.6 billion raised by OpenAI itself.
What happened in the $6.6 billion share sale?
On October 2, 2025, Reuters and The Associated Press reported that current and former OpenAI employees sold approximately $6.6 billion worth of shares to outside investors. The transaction price implied a $500 billion valuation for the privately held company. Reuters described that figure as up from a previous $300 billion valuation. Reuters and The Associated Press attributed the deal details to sources familiar with the transaction who were not authorized to speak publicly; the reports were not a public company filing or an OpenAI announcement.
Reuters named Thrive Capital, SoftBank, Dragoneer Investment Group, Abu Dhabi’s MGX, and T. Rowe Price among the buyers. It also reported that OpenAI had authorized more than $10 billion in secondary stock sales. That authorization was a ceiling, not the reported completed-sale amount: the approximately $6.6 billion figure refers to shares reportedly sold.
Was the $6.6 billion an investment in OpenAI?
No. This was a secondary share sale: existing shareholders sold their shares to investors, providing liquidity to the employee sellers. In a primary financing, investors buy newly issued shares or otherwise provide capital to the company. The reported employee sale should not be described as $6.6 billion of new money raised by OpenAI.
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Reuters separately noted SoftBank’s participation in an earlier $40 billion primary funding round. That company financing was a different transaction from the employee liquidity event. The reported coverage does not establish the complete terms of the share sale, the price per share, or how much any individual seller or buyer participated.
What does a $500 billion private valuation mean?
The $500 billion figure was an implied valuation based on the price paid in a private transaction involving a portion of OpenAI’s shares. It was not a publicly traded market capitalization or a promise that all OpenAI shares could be sold at that price. Private-company share sales can involve a limited number of shares and investors; the reported figure does not establish a public exchange price or a retail market for the shares.
A valuation is also not the same as earnings. Reuters reported $4.3 billion in OpenAI revenue for the first half of 2025, citing The Information. Revenue is money generated from business activity, not profit; that figure alone does not show the company’s expenses, cash needs, or profitability.
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Why are there much larger OpenAI figures in later reports?
Later reports refer to different dates and measures, so they should not be treated as a direct update to the 2025 employee-sale valuation.
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| Figure | What it describes | How to read it |
|---|---|---|
| $500 billion | Valuation implied by the reported employee share sale in October 2025 | A private secondary transaction, reported by Reuters and AP—not a public-market capitalization. |
| Nearly $70 billion | Annual recurring revenue estimate reported by Axios on September 29, 2026 | An estimate attributed to sources familiar with OpenAI’s financials. Axios said it did not immediately learn the corresponding expense details, so it is not a complete measure of profitability. Axios |
| $1.4 trillion | Valuation described in a September 30, 2026 report about a prospective $30 billion funding round | A reported negotiation, not confirmation that financing closed or that the valuation was settled. Cinco Días |
These numbers are not directly comparable: they involve different transaction types and dates, while recurring revenue is a business measure rather than a valuation. The available reporting does not provide enough detail to calculate a reliable valuation multiple across them.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What did the reported valuation say about investor expectations?
At the time of its October 2025 report, AP said OpenAI was not yet profitable and framed the valuation as reflecting investor expectations for AI’s future alongside uncertainty about whether AI products would meet those expectations. In response to questions about an AI bubble, AP quoted CEO Sam Altman: “Between the ten years we’ve already been operating and the many decades ahead of us, there will be booms and busts.” He also said, “People will overinvest and lose money, and underinvest and lose a lot of revenue.” AP’s report
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