OpenAI Completes $7 Billion Share Sale at $852 Billion Valuation as IPO Plans Progress
Sam Altman's OpenAI recently completed a $7 billion share sale from current and former employees, conducted internally rather than through external investment. The transaction occurred at an $852 billion valuation and was aimed at providing liquidity to employees, not raising capital for operations or expansion. The company is preparing for its IPO after submitting a confidential registration statement in June 2026. OpenAI reportedly considers listing options either sooner with a lower valuation closer to the current one or delaying until 2027 for potentially higher pricing. A $1 trillion valuation would represent significant growth from recent figures, though it raises concerns due to high revenue multiples and lack of profitability. Despite impressive sales growth—$5.7 billion in Q1 leading to an annualized $22.8 billion—the company's net loss widened significantly between the first and second quarters. While investor interest is strong—with nearly 70% of surveyed investors expressing intent to buy OpenAI or Anthropic stock if they go public—concerns remain about whether OpenAI can transition from rapid revenue growth into sustainable profitability.
Tickers: $NVDA
Topics: employee share sale IPO OpenAI valuation