OpenAI is reportedly in advanced talks to sell shares at a valuation that would place it above Elon Musk’s SpaceX, potentially raising its market value to around $500 billion. If completed, the transaction would mark a major milestone for the ChatGPT developer, reflecting growing investor appetite for artificial intelligence technologies.
Valuation set to jump by two-thirds
Sources familiar with the discussions say OpenAI’s latest funding round could increase its valuation from roughly $300 billion to half a trillion dollars, a roughly 66% rise. The deal is expected to attract a mix of institutional investors, tech giants, and sovereign wealth funds eager to gain exposure to AI’s rapid growth.
The sharp increase would push OpenAI ahead of SpaceX, which is valued at about $450 billion, making it one of the most valuable private technology companies globally. The financing round is seen as a signal of confidence in OpenAI’s leadership in generative AI and its expanding commercial applications.
ChatGPT’s success fuels investor enthusiasm
OpenAI’s breakthrough with ChatGPT and subsequent AI models has transformed the technology landscape, driving demand for AI-powered products across sectors such as software, healthcare, and finance. The company has monetised its AI through partnerships, licensing, and cloud computing deals, building a strong revenue base.
Investors are betting on OpenAI’s potential to dominate the next wave of AI innovation, with applications spanning from natural language processing to robotics. The company’s research-driven approach and partnerships with major tech firms provide a competitive edge.
Elon Musk’s complex relationship with OpenAI
Elon Musk was a co-founder of OpenAI but stepped back from the organisation years ago, focusing on SpaceX and Tesla. While Musk’s SpaceX continues to lead in aerospace, OpenAI’s valuation surge highlights the commercial value of AI technologies relative to space exploration.
Musk has recently expressed scepticism about AI risks but remains a vocal figure in the tech industry. The growing valuation gap between his ventures underscores the divergent trajectories of space and AI innovation.
Implications for the AI sector
A $500 billion valuation would place OpenAI in the same league as some of the world’s biggest tech giants, intensifying competition for talent, customers, and strategic partnerships. It may also prompt rival AI startups to accelerate fundraising efforts, fueling further consolidation in the sector.
Regulators and policymakers are closely watching the rapid growth of AI companies like OpenAI, weighing concerns over market dominance, ethical use, and data privacy against the benefits of technological advancement.
Next steps and market impact
If the share sale proceeds as planned, it could unlock liquidity for early investors and employees, while providing OpenAI with capital to expand research and commercial initiatives. The transaction is expected to close in the coming months, subject to due diligence and market conditions.
The deal’s success will likely be a bellwether for AI investment appetite, influencing valuations across the emerging technology landscape.
REFH – Newshub, 7 August 2025
