(Substack)—Current and former OpenAI employees are gearing up to offload around $6 billion in shares through a secondary sale that could peg the company’s worth at about $500 billion, according to recent reports. Investors like SoftBank, Dragoneer Investment Group, and Thrive Capital— all prior backers of the AI firm— stand ready to buy in, with negotiations still in their preliminary phase and subject to shifts.
This move marks another leap for OpenAI, which started as a non-profit focused on open-source AI development but has since morphed into a for-profit powerhouse chasing aggressive growth. The valuation would represent a sharp increase from the $300 billion mark set during a $40 billion funding round in March 2025, which was already the biggest ever for a private tech entity. Just earlier this month, OpenAI pulled in an additional $8.3 billion in capital tied to that round.
The surge traces back to the late 2022 debut of ChatGPT, which ignited widespread interest in generative AI. But the path hasn’t been smooth. Last week saw the rollout of GPT-5, touted as the company’s most sophisticated model yet, with enhancements in speed, intelligence, and applications spanning writing, coding, and healthcare. User backlash quickly followed, with complaints about restricted access to earlier versions like GPT-4o.
“We for sure underestimated how much some of the things that people like in GPT-4o matter to them, even if GPT-5 performs better in most ways,” OpenAI CEO Sam Altman wrote in a post on X.
Despite the hype, questions linger about whether OpenAI’s valuation holds water. For the fiscal year ending March 31, 2025, the company reported just $108 million in revenue—a figure dwarfed by its projected worth. Annual losses reportedly hover around $5 billion, raising red flags about sustainability in an industry prone to bubbles reminiscent of the dot-com era. Critics argue this disconnect highlights “AI euphoria” more than solid fundamentals, with some labeling the $500 billion tag as outright “insane.”
From a conservative standpoint, the rapid ascent of firms like OpenAI underscores broader worries about unchecked AI advancement. Studies have pointed to political biases in tools like ChatGPT, which often align more with left-leaning views than the average American’s, potentially skewing public discourse and cultural narratives. Job displacement remains a pressing issue, as AI’s encroachment into creative and professional fields threatens traditional livelihoods without adequate safeguards.
Competition adds another layer. Elon Musk’s xAI, positioned as a counterweight to OpenAI’s direction, has drawn attention for its emphasis on truth-seeking over what Musk calls “woke” AI. Earlier in 2025, Musk led a consortium bidding $97 billion for control of OpenAI amid disputes over its shift from non-profit roots. With xAI’s valuation trailing but its mission resonating with free-market and free-speech advocates, the AI landscape feels increasingly like a battleground.
As OpenAI pushes forward, conservatives are calling for tighter regulations to prevent monopolistic dominance and ensure AI serves societal good rather than inflating Silicon Valley fortunes. This stock sale, if it materializes, could cement OpenAI’s lead—but at what cost to innovation, ethics, and economic stability?
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Author: Economic Report
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