**OpenAI Overtakes SpaceX as World’s Most Valuable Start-Up at $500 Billion**
*By Akash Pandey | Oct 02, 2025, 11:11 AM*
OpenAI has surpassed Elon Musk’s SpaceX to become the world’s most valuable start-up, reaching a staggering $500 billion valuation following a secondary share sale, Bloomberg reports.
The recent deal involved current and former employees selling approximately $6.6 billion worth of shares. The transaction was led by prominent investors including Thrive Capital, SoftBank Group Corp., Dragoneer Investment Group, Abu Dhabi’s MGX, and T. Rowe Price. This new valuation significantly exceeds OpenAI’s previous worth of $300 billion, which was established during a $40 billion funding round also led by SoftBank Group Corp.
**A Strategy to Reward and Retain Employees**
This secondary share sale is part of OpenAI’s broader strategy to reward and retain its employees, while simultaneously attracting external investors. Notably, the total units sold in this secondary offering remained below the $10 billion-plus stock the company had made available. This suggests strong confidence among current and former employees about the company’s long-term prospects.
**Talent Retention Amid Intensifying Competition**
The secondary sale comes at a time when OpenAI faces increasing competition for AI talent. Meta Platforms Inc. has been aggressively recruiting researchers from top labs to join its new “super-intelligence” team. In this competitive landscape, OpenAI’s share sale serves as a key incentive to encourage staff to stay and resist lucrative offers from rivals.
With this monumental valuation and strategic moves to secure its workforce, OpenAI continues to solidify its leadership position in the rapidly evolving AI sector.
https://www.newsbytesapp.com/news/business/openai-becomes-most-valuable-start-up-after-500b-valuation-beating-spacex/story