OpenAI Surpasses SpaceX to Become World’s Most Valuable Private Company at $500 Billion
OpenAI has officially become the world’s most valuable private company, hitting a record $500 billion valuation and surpassing SpaceX ($400 billion) and TikTok parent ByteDance ($220 billion).
Bloomberg reports that the milestone came after OpenAI approved a secondary share sale, letting employees and early backers cash out some of their holdings. While the company initially authorized $10.3 billion worth of stock, it ended up selling $6.6 billion to big-name investors, including SoftBank, Abu Dhabi’s MGX fund, Thrive Capital, and T. Rowe Price. That sale boosted its valuation from $300 billion to half a trillion.
In September, OpenAI revealed plans to shift into a Public Benefit Corporation (PBC), with its nonprofit arm maintaining control. Interestingly, the nonprofit division has secured more than $100 billion in equity, giving it major influence over the company’s future direction.
The move has drawn sharp criticism from Elon Musk, who co-founded OpenAI and helped fund its early days. Musk argues the restructuring violates the company’s original mission to create AI “for the benefit of humanity” and is currently suing to block the transition.
Despite the controversy, CEO Sam Altman sees the PBC model as key to attracting deeper investment by removing the cap on financial returns. And with OpenAI’s massive ambitions, funding is essential. Altman has openly stated he plans to spend trillions of dollars building out global data centers to support AI development and services.
With its valuation now at half a trillion, OpenAI has not only cemented its dominance in the AI race but also taken center stage as the most powerful private player in the global tech industry.
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