**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, following a secondary share sale that valued the company at an astonishing $500 billion, according to Bloomberg.
The recent transaction involved current and former employees selling approximately $6.6 billion worth of shares. The deal was led by major investors including Thrive Capital, SoftBank Group Corp., Dragoneer Investment Group, Abu Dhabi’s MGX, and T. Rowe Price.
Previously, OpenAI was valued at $300 billion during a $40 billion funding round also spearheaded by SoftBank Group Corp. This sharp increase in valuation underscores the company’s rapidly growing influence in the AI industry.
**A Strategy to Reward and Retain Talent**
The latest secondary share sale is part of OpenAI’s broader strategy to reward and retain employees, while simultaneously attracting external investors. Notably, the total eligible units sold in this secondary offering were below the $10 billion-plus stock the company had made available, signaling strong confidence from current and former employees in OpenAI’s long-term prospects.
**Intensifying Competition for AI Talent**
OpenAI’s move comes amid increasing competition for AI talent. Meta Platforms Inc. has been aggressively recruiting researchers from top labs to build its new “super-intelligence” team, posing a serious challenge for OpenAI.
By offering lucrative compensation through share sales and other incentives, OpenAI aims to retain its top talent and encourage them to stay, even when faced with tempting offers from rival firms.
With this latest valuation milestone and strategic initiatives, OpenAI continues to solidify its leadership position in the ever-evolving field of artificial intelligence.
https://www.newsbytesapp.com/news/business/openai-becomes-most-valuable-start-up-after-500b-valuation-beating-spacex/story
