OpenAI Increases Share Sale to $10 Billion Amid CEO Altman’s Warning of an ‘AI Bubble’

This content is not intended as investment advice. The author does not hold any shares in the companies discussed.

OpenAI has announced a significant increase in its secondary share sales, raising the total from $6 billion to an impressive $10.4 billion, according to a report by CNBC. As the world’s leading AI firm, OpenAI’s equity sell-off is part of a broader strategy aimed at reaching a valuation of $500 billion while addressing its ownership and profitability landscape. This move follows CEO Sam Altman’s caution regarding the possibility of an AI market bubble, as many businesses continue to struggle with monetizing their AI technologies.

OpenAI Expands Secondary Offering, Providing Employees an Opportunity for Liquidation

As reported by CNBC, OpenAI’s updated secondary offering structure allows investment firms such as SoftBank, T. Rowe Price, and Abu Dhabi’s MGX to participate in the share purchase. Additionally, employees who have held OpenAI shares for more than two years will now have the opportunity to sell their stakes. This initiative not only aids in liquidity for staff but also seeks to attract high-profile investors.

This development arrives shortly after CEO Sam Altman’s thought-provoking comments indicated that the market may be headed toward an overvaluation phase. He noted that “smart people get overexcited about a kernel of truth, ”suggesting that while AI is undeniably significant, there may be excessive enthusiasm among investors presently. His remarks have resonated amidst a backdrop where AI stocks—especially those of NVIDIA Corporation—have exhibited substantial volatility this year, driven by investor optimism about forthcoming AI-related expenditures.

Altman’s insights came in light of OpenAI’s recent stint with its GPT-5 models, which reportedly fell short of user expectations, casting doubt on the firm’s scalability and future product viability. Despite claims from AI corporations about progressing towards artificial general intelligence, two years post-ChatGPT’s public release, many of these aspirations remain unfulfilled.

While OpenAI’s intended share sale is anticipated at a $500 billion valuation, its latest funding round pegged the company’s worth at $300 billion. This valuation positions OpenAI as the second most valuable unicorn startup globally, trailing only SpaceX, which has achieved a remarkable $400 billion valuation.

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