OpenAI, the company behind ChatGPT and a leader in the rapidly expanding field of artificial intelligence, is reportedly in early-stage discussions for a new stock sale that could value it at an unprecedented $500 billion. If realized, this valuation would not only underscore the company’s meteoric rise since launching its flagship AI product but would also potentially make it the world’s most valuable private technology firm, surpassing even Elon Musk’s SpaceX, which currently holds a $400 billion valuation.

According to a Bloomberg report released on August 5, the proposed transaction would take the form of a secondary share sale. This means that rather than the company issuing new shares to raise capital, existing employees and early stakeholders would be given an opportunity to sell their shares directly to investors. Such a move allows OpenAI to maintain its private status while rewarding its staff and early backers – a strategy that is becoming increasingly common among elite tech startups.

Founded in 2015 as a nonprofit research organization committed to the safe development of artificial intelligence, OpenAI has undergone a radical transformation. The company transitioned to a capped-profit model in 2019, partnering with Microsoft in a deal that included a $1 billion investment. That collaboration has since evolved, with Microsoft investing billions more and integrating OpenAI’s technology into its products – most notably, embedding ChatGPT into Bing and Microsoft Office.

OpenAI’s rise was turbocharged in November 2022 with the launch of........

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