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Abu Dhabi’s MGX, T. Rowe Price Buy Shares in OpenAI $6.6B Sale

  • OpenAI employees completed a $6.6 billion stock sale to external investors.
  • The deal pushed OpenAI’s company valuation to $500 billion.
  • Investors included Thrive Capital, SoftBank, Dragoneer, Abu Dhabi’s MGX, and T. Rowe Price.
  • OpenAI recently launched ChatGPT 5, opened new offices, and reported 700 million global users.
  • A new partnership deals with NVIDIA involving $100 billion investment and joint AI product development.

OpenAI employees have sold $6.6 billion worth of stock in a buyback arrangement with major investors, according to a recent Bloomberg report. The transaction included participation from global firms such as Thrive Capital, SoftBank, Dragoneer, Abu Dhabi’s MGX, and T. Rowe Price.

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Following the deal, OpenAI’s valuation rose sharply to $500 billion, up from $300 billion in its most recent funding round earlier this year. This represents one of the largest jumps in worth for a private tech company in 2024.

The report highlighted that OpenAI, developer of ChatGPT, stands as a leader in the Artificial Intelligence sector amid increasing competition from global tech companies. With an estimated 700 million users worldwide and projected annual revenue of $13 billion, OpenAI remains a dominant force.

The latest share sale moves OpenAI’s market value past SpaceX, which was last valued at $400 billion following an employee stock sale in July. In the past few months, OpenAI has launched its new flagship model, ChatGPT 5, expanded into India and South Korea, and increased its investment in data centers.

Additionally, OpenAI and Nvidia have entered a major partnership, with Nvidia investing $100 billion, and both companies committing to develop artificial intelligence products together. ChatGPT continues to be the market leader in consumer AI applications and large language models, but faces rising competition from technology companies worldwide.

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