Summary:
OpenAI is in talks for a $6 billion secondary sale that could value the company at $500 billion, making it the world's most valuable private firm.
Venture capital for AI startups has surged to $129 billion in 2025, highlighting intense investor interest in the sector.
Databricks raised funding at a $100 billion valuation, up from $62 billion, driven by the AI boom and successful IPOs like Figma's.
OpenAI faces legal challenges from Elon Musk and scrutiny from attorneys general over its restructuring and mission alignment.
The AI race involves major tech giants spending billions on research and infrastructure, with OpenAI competing fiercely against rivals like Google.
OpenAI's Stunning Valuation Surge
OpenAI, the creator of ChatGPT, is in advanced discussions for a secondary market sale that would value the artificial intelligence giant at approximately $500 billion. This deal involves the sale of $6 billion in shares owned by current and former employees to investors, including SoftBank and Thrive Capital.
At this valuation, OpenAI would surpass all other privately held companies globally, according to data from CB Insights. The San Francisco-based AI lab has seen its worth skyrocket from $157 billion in October 2024 to $300 billion in March 2025, driven by intense investor interest in the AI race.
Sam Altman, CEO of OpenAI, leading the charge in the AI boom.
The AI Investment Frenzy
Silicon Valley is ablaze with AI investments, with venture capital deals for AI startups reaching $129 billion through August 18, 2025, up from $106 billion for all of 2024. Major players like Meta, Google, Amazon, and Microsoft are pouring billions into AI research and infrastructure.
In a related development, Databricks, another San Francisco AI company, announced a funding round valuing it at over $100 billion, up from $62 billion. CEO Ali Ghodsi noted a surge in investor interest following Figma's successful IPO, which hit a $67.7 billion market cap on its first trading day.
Ali Ghodsi, co-founder and CEO of Databricks, experiencing a flood of investor outreach.
Challenges and Controversies
OpenAI's rapid growth is not without hurdles. The company is working to adopt a more traditional corporate structure to eventually go public, but faces opposition from Elon Musk, a co-founder now running rival xAI, who has filed a lawsuit to block the restructuring. Additionally, attorneys general in California and Delaware are monitoring concerns that OpenAI may be straying from its original nonprofit mission of benefiting humanity.
The New York Times has also sued OpenAI and Microsoft for alleged copyright infringement related to AI systems, though both companies deny the claims.
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