OpenAI has once again set a new Silicon Valley wealth creation myth. According to the latest report by Bloomberg, this AI giant has just completed a $6.6 billion employee stock sale transaction, directly pushing its valuation to a record high of $500 billion, setting a new record for private companies.
The list of investors participating in this deal is impressive: SoftBank, Dragoneer Investment Group, Thrive Capital, MGX, and T. Rowe Price all took part. However, this transaction was somewhat special - the money did not go into OpenAI's account, but directly into the pockets of current and former employees. In short, it was a "large-scale employee benefit giveaway."
Why would OpenAI do this? The answer is to retain talent. This summer, Meta's revived AI lab lured at least seven top engineers from OpenAI, offering signing bonuses of millions of dollars. Allowing employees to cash out early is undoubtedly the most direct defensive strategy. The company just completed a $4 billion financing round in August, when its valuation was $300 billion, and within a few months, its valuation has surged nearly 70%.
OpenAI's ability to raise funds is indeed terrifying. The company has promised to invest $300 billion in Oracle Cloud services over the next five years, a figure far exceeding its current revenue and reserves. However, from the financing pace, this seems not to be an impossible dream - in September this year, NVIDIA announced it would invest $100 billion in OpenAI for strategic infrastructure collaboration.
The timing of this transaction is also quite delicate. Just a few weeks ago, OpenAI just reached a non-binding agreement with Microsoft, and the public generally believes this is laying the groundwork for transitioning to a profit-making entity. However, the court has not yet approved it, and if the transition fails, this large-scale stock sale may trigger a chain reaction. Nevertheless, OpenAI hasn't been idle, as the company recently released the Sora2 video model and associated social media features. The company reported revenue of $4.3 billion in the first half of 2025, while burning through $2.5 billion in cash.
