SAN FRANCISCO (Diya TV) — OpenAI has reached a $500 billion valuation, officially becoming the world’s most valuable startup and surpassing SpaceX, according to people familiar with the deal. The ChatGPT maker closed a share sale that lifted its valuation to half a trillion dollars, a milestone that places it among the world’s largest companies only three years after launching its flagship product. The deal signals investor confidence in the future of artificial intelligence despite steep costs and ongoing financial losses.
A group of investors, including Japan’s SoftBank and the United Arab Emirates-based firm MGX, agreed to buy $6.6 billion worth of shares from OpenAI employees. The transaction, finalized this week, valued OpenAI at roughly $500 billion. The deal marks a sharp jump from earlier this year, when SoftBank led a $40 billion investment at a $300 billion valuation. The new price tag positions OpenAI above Elon Musk’s SpaceX, which is valued at about $456 billion, and puts it in the league of energy giant Exxon Mobil.
OpenAI has seen explosive growth since releasing ChatGPT in late 2022. The company said in August that it had 700 million weekly users, a sign of how quickly generative AI has entered the mainstream. But the company’s rapid rise has come with mounting expenses. OpenAI expects about $13 billion in revenue this year but still faces net losses in the billions, according to reports from The Wall Street Journal.
The startup has committed to enormous infrastructure costs. It signed a deal with Oracle to purchase $300 billion worth of computing power over the next five years. It has also pledged $10 billion to a chip-making partnership with Broadcom, while pursuing its own hardware device and new data centers.
To keep up with demand, OpenAI has deepened its ties with Nvidia, the world’s leading maker of AI chips. The two companies recently unveiled a plan that could see Nvidia invest up to $100 billion in OpenAI. Industry observers say this arrangement effectively recycles the money OpenAI spends on Nvidia chips, but it reflects the high stakes of the AI race.
The collaboration underscores how crucial specialized chips are to training large AI models. By locking in supply, OpenAI hopes to secure the infrastructure it needs to maintain its lead. Despite the losses and steep commitments, investors remain bullish. They see OpenAI as a frontrunner in a technology that could reshape industries ranging from healthcare and finance to education and entertainment.
The valuation highlights the frenzy around AI startups and the belief that tools like ChatGPT, DALL·E, and enterprise-focused products will soon drive massive revenue streams. Supporters argue that the company’s scale, brand recognition, and talent pool give it a lasting advantage.
At $500 billion, OpenAI’s valuation puts it on par with some of the most established companies in the world. Exxon Mobil, for example, generated nearly $350 billion in revenue and over $30 billion in profit last year. OpenAI, by comparison, is still burning cash but carries the promise of powering the next major wave of technology.
