**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, achieving a staggering $500 billion valuation following a secondary share sale, Bloomberg reports.
The transaction involved current and former employees selling approximately $6.6 billion worth of shares. The deal was led by prominent 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 led by SoftBank Group Corp. This recent secondary sale marks a significant leap in the company’s valuation.
### Strategy to Reward and Retain Employees
This latest secondary share sale forms part of OpenAI’s broader strategy to reward and retain its employees, while simultaneously attracting external investors. Notably, the total eligible units sold during this secondary offering remained below the $10 billion-plus stock the company had made available. This suggests strong confidence among current and former employees in OpenAI’s long-term prospects.
### Talent Retention Amid Rising Competition
OpenAI’s share sale comes amid intensifying competition for AI talent, notably from Meta Platforms Inc., which has been aggressively recruiting researchers from leading labs for its new “super-intelligence” team. The secondary sale is viewed as a move by OpenAI to incentivize its staff to stay committed to the company and resist lucrative offers from rival firms.
With this milestone, OpenAI not only solidifies its lead in the AI industry but also demonstrates its commitment to maintaining its talent pool and investor confidence as it continues to shape the future of artificial intelligence.
https://www.newsbytesapp.com/news/business/openai-becomes-most-valuable-start-up-after-500b-valuation-beating-spacex/story
