OpenAI expands secondary share sale to $10.3 billion, valuation jumps to $500 billion

```

Media reports state that OpenAI is expanding the scale of its secondary stock sale by more than $4 billion, with the company being valued at $500 billion in this round.

According to a source familiar with the matter, OpenAI is giving current and former employees the opportunity to sell about $10.3 billion worth of stock, far exceeding the initially set $6 billion. The source told the media that the valuation for this sale is $500 billion, which is in line with market expectations. Earlier this year, OpenAI’s most recent financing round valued the company at $300 billion.

OpenAI made the sale offer to employees this Wednesday. The aforementioned source told the media that employees who have held shares for more than two years may decide whether to participate in this sale before the end of September, with the transaction expected to be completed in October.

Participating investors in this sale include SoftBank, Dragoneer Investment Group, Thrive Capital, Abu Dhabi’s MGX, and T. Rowe Price.

OpenAI is one of the few high-valuation tech startups that regularly provides employees with opportunities to cash out shares, helping to ease the pressure to go public. A previous Wallstreetcn article said this deal is seen as part of preparations for an eventual IPO. At a $500 billion valuation, OpenAI would surpass the market capitalization of most tech IPOs in U.S. history and join the ranks of the most valuable publicly listed tech companies.

SpaceX, Stripe, and Databricks have also used similar secondary market transactions to help employees realize some of their equity gains. Last November, OpenAI allowed employees to sell about $1.5 billion worth of shares in a tender offer that included SoftBank.

OpenAI CFO Sarah Friar stated in an interview on the 20th of last month that the company may go public in the future, marking the first time OpenAI executives have openly expressed the possibility of an IPO. Although she did not disclose a specific timetable, this indicates a possible strategic shift for OpenAI.

Friar previously revealed that OpenAI’s revenue this year is expected to reach $12.7 billion, three times last year's figure. The company stated that its annualized recurring revenue (ARR) recently surpassed $10 billion. Friar also revealed that OpenAI broke $1 billion in monthly revenue for the first time in July this year.

Risk Warning and DisclaimerThe market involves risks, and investments should be made cautiously. This article does not constitute individual investment advice and does not take into account the specific investment objectives, financial situations, or needs of any particular users. Users should consider whether any opinions, perspectives, or conclusions in this article are suitable for their specific situation. Investing based on this information is at your own risk. ```