Highlights:

– OpenAI ups its secondary employee share sale to $10.3 billion, extending offer through September for those with two-year tenure.
– Valuation implied at $500 billion, nearly double the $300 billion from its April primary funding round.
– Investors eye both liquidity and strategic validation amid rapid revenue and user growth—but profitability concerns linger.

OpenAI has expanded its secondary share sale to $10.3 billion, giving long-term employees additional opportunity to liquidate equity ahead of a likely IPO. This deepens investor confidence as the AI firm edges closer to an estimated $500 billion valuation, significantly above its $300 billion price tag earlier in the year.

Secondary Sale: Boosting Employee Liquidity—and Valuation

OpenAI presented the enlarged offer to current and former employees who hold shares for more than two years, extending participation through the end of September. The transaction is expected to close in October. Such a substantial secondary share sale—surpassing last year’s offerings—provides critical liquidity to early-stage employees and underscores robust investor demand for exposure to OpenAI’s equity.

Valuation Surge: From $300 B to $500 B

This secondary offering implies an approximate $500 billion valuation, doubling the figure set in OpenAI’s April primary fundraising, which raised $40 billion at a $300 billion valuation. OpenAI’s revenue has surged in parallel—annual run rate reached $12 billion through mid-2025, with projections to climb to $20 billion by year-end. ChatGPT adoption similarly exploded, reaching 700 million weekly active users from a much lower base earlier in the year. The jump in valuation reflects both financial performance and investor enthusiasm seeking long-term upside in AI.

Market Context: Momentum Meets Risk

Investor optimism is palpable: OpenAI is poised to become the most valuable private tech company—surpassing SpaceX’s $400 billion valuation. Enthusiasts compare this era to the internet boom, betting on a future where OpenAI could rival Google or Facebook in scale and influence. Yet cautionary voices remain. CEO Sam Altman himself likened current investor exuberance to past tech bubbles and warned of excessive hype. Meanwhile, despite surging revenue, OpenAI continues to burn through billions in cash—estimates indicate up to $8 billion in annual infrastructure and compute costs.

Strategic Implications: IPO, Liquidity or Structural Shift?

This secondary sale serves multiple purposes: providing liquidity, anchoring a sky-high valuation, and testing investor appetite ahead of a potential IPO. Concurrently, OpenAI is transitioning away from its original capped-profit structure toward a public-benefit corporation model, laying groundwork for future public market entry. A successful, well-subscribed share sale at this level could strengthen the case for a debut, though market conditions and internal readiness will ultimately determine timing.

Looking ahead, investors and observers should closely monitor how much of the $10.3 billion offer is taken up, whether OpenAI can sustain its revenue trajectory toward a projected $20 billion ARR, and how aggressively it scales infrastructure without jeopardizing financial discipline. Profitability concerns and geopolitical dynamics around AI governance remain significant variables. A landmark secondary sale could propel OpenAI toward public markets—but only if growth continues to justify this lofty valuation.