OpenAI is Aiming for $500 Billion Valuation: Source

OpenAI, the creator of ChatGPT, is in preliminary talks about a stock offering that could enable employees to cash out and may value the company at approximately $500 billion, a source familiar with the situation said.

Existing investors, like Thrive Capital, are also in discussions to participate, the source added, who asked to remain anonymous due to privacy concerns.

This $500 billion valuation represents a substantial rise from the company’s current valuation of $300 billion, supported by Microsoft.

The potential share sale would serve as a financial incentive for employees, especially as tech giants like Meta compete fiercely for AI talent by offering attractive compensation packages.

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Thrive Capital declined to comment. Bloomberg was the first to report the potential sale on Tuesday.