OpenAI eyes $500 billion valuation in potential employee share sale, source says

By Krystal Hu and Yazhini MV

(Reuters) -ChatGPT maker OpenAI is in early-stage discussions about a stock sale that would allow employees to cash out and could value the company at about $500 billion, a source familiar with the matter said.

Existing investors, including Thrive Capital, are in discussions to participate, said the source, who requested anonymity because the talks are private.

The $500 billion valuation is an eye-popping bump-up from the $300 billion valuation that the Microsoft-backed company currently has.

The share sale would offer a financial incentive to employees as technology giants such as Meta compete aggressively for AI researchers with lucrative compensation packages.

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

(Reporting by Krystal Hu in New York and Yazhini MV in Bengaluru; Editing by Sumeet Chatterjee and Edwina Gibbs)