OpenAI’s $6.6B Secondary Share Sale Gives It Record $500B Startup Valuation, Topping SpaceX
OpenAI on Thursday completed a secondary share sale amounting to $6.6 billion, Bloomberg reported. The sale gives current and prior employees the ability to sell stock at a $500 billion valuation.
The transaction and resulting valuation also grant OpenAI the distinction of now being the world’s most valuable private, venture-backed company, surpassing SpaceX, which is valued at $400 billion based on its own secondary share sale this summer.
According to CNBC, OpenAI had authorized up to $10.3 billion in shares for sale, which was up from its original $6 billion target. But only about two-thirds of what it had authorized ultimately got sold.
Besides OpenAI and SpaceX, several other high-valued private companies have turned to secondary sales, which are often used to reward employees and as a retaining tool for companies not ready to go public.
In February, fintech giant Stripe announced a tender offer in which investors would buy shares from past and present employees at a valuation of $91.5 billion. Last December, Databricks raised $10 billion at a $62 billion valuation in a deal that included a secondary share sale aimed at providing liquidity for current and former employees.
In April, OpenAI also made headlines for an investment of up to $40 billion from Japanese investment conglomerate SoftBank in a deal that marked the largest startup financing ever and valued it at $300 billion.
Related reading:
- The Crunchbase Unicorn Board
- Databricks Raises $10B In 2024’s Largest Venture Funding Deal
- SoftBank And OpenAI Make History With Largest Startup Financing Ever
Illustration: Dom Guzman
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OpenAI’s $6.6B Secondary Share Sale Gives It Record $500B Startup Valuation, Topping SpaceX
OpenAI on Thursday completed a secondary share sale amounting to $6.6 billion, Bloomberg reported. The sale gives current and prior employees the ability to sell stock at a $500 billion valuation.
The transaction and resulting valuation also grant OpenAI the distinction of now being the world’s most valuable private, venture-backed company, surpassing SpaceX, which is valued at $400 billion based on its own secondary share sale this summer.
According to CNBC, OpenAI had authorized up to $10.3 billion in shares for sale, which was up from its original $6 billion target. But only about two-thirds of what it had authorized ultimately got sold.
Besides OpenAI and SpaceX, several other high-valued private companies have turned to secondary sales, which are often used to reward employees and as a retaining tool for companies not ready to go public.
In February, fintech giant Stripe announced a tender offer in which investors would buy shares from past and present employees at a valuation of $91.5 billion. Last December, Databricks raised $10 billion at a $62 billion valuation in a deal that included a secondary share sale aimed at providing liquidity for current and former employees.
In April, OpenAI also made headlines for an investment of up to $40 billion from Japanese investment conglomerate SoftBank in a deal that marked the largest startup financing ever and valued it at $300 billion.
Related reading:
- The Crunchbase Unicorn Board
- Databricks Raises $10B In 2024’s Largest Venture Funding Deal
- SoftBank And OpenAI Make History With Largest Startup Financing Ever
Illustration: Dom Guzman
Читать больше
The Week’s 10 Biggest Funding Rounds: Another Big Week For AI And California Startups