OpenAI introduces its latest GPT-5 model, designed to shore up its position in the AI race.
The creator of ChatGPT, OpenAI, is just one step away from becoming the world’s most valuable private company. It is in talks to sell $6 billion shares, which would raise its value to $500 billion, according to reports. The shares are sold to the current and previous employees.
OpenAI has grown a lot over the last year. Microsoft and SoftBank have invested over $40 billion in the startup, raising its valuation to $300 billion as of March.
If the startup gets to $500 valuation, it would be valued more than Elon Musk’s SpaceX, which is currently the most valuable private company at $350 billion.
The investors interested in OpenAI shares are SoftBank, Dragoneer Investment Group, and Thrive Capital. OpenAI chose not to respond, but the talks are still in early stages, and figures could change.
OpenAI is leading the competitive race, where many powerful companies are battling to outpace each other in the AI field. Meta, Google, Amazon, and Microsoft have spent $155 billion in 2025 alone on AI development, from hiring engineers to building data centers.
Although AI has changed a lot since the release of ChatGPT in 2022, OpenAI’s latest version of the model supporting its chatbot, GPT-5, has received a lukewarm response during its recent launch. Users have criticized that the new AI writing is worse and lacks the personality of previous versions.
Sam Altman, the CEO of OpenAI, stated that the company is working to build an AI that can outperform humans. In the recent launch, he stated that GPT-5 was “generally intelligent” and not yet capable of “continuous learning.”
In recent months, OpenAI has lost many of its research staff, who have departed to join Meta. Meta has been aggressively recruiting top talent from Apple and other competitors for its superintelligence AI team, enticing them with compensation packages that reach into the nine figures. A secondary reason to sell shares of OpenAI could be to incentivize employees to remain in the company, amid lavish offers from other companies.
OpenAI also faces competitive pressure from rival AI startups. Anthropic, founded by former OpenAI employees, is close to getting a deal to raise up to $5 billion in a funding round that can value it at $170 billion. Additionally, Elon Musk’s startup xAI is reportedly seeking a valuation of $200 billion. OpenAI is also trying to keep up with them by releasing many significant tech releases recently.
The list can start with them introducing a set of openly accessible artificial intelligence models that mimic human reasoning processes, after China’s DeepSeek gained global attention for its open AI software. OpenAI introduces its latest GPT-5 model, designed to shore up its position in the AI race. The startup is also allowing access to its ChatGPT product to US federal agencies at a minimal fee of $1 per year to push the adoption of its AI chatbot.
ChatGPT has reached 700 million weekly active users, increasing from 500 million at the end of March. The app also crossed 3 billion user messages each day.
In May, it announced its plans to buy AI device startup cofounded by former Apple executive Jony Ive for a $6.5 billion all-stock deal, collaborating with the legendary designer to expand its hardware offerings.
It also faced several challenges. OpenAI is having a separate conversation about its future as a for-profit company, a discussion that’s been dragging on for months. Microsoft, which has invested $13.75 billion in OpenAI and has the right to use its intellectual property, remains the primary obstacle among the investors of the ChatGPT maker, according to reports.
The discussions have evolved into a reconfiguration of their partnership, with the software giant aiming to have continued access to the startup technology before the end of their deal, which expires in 2030.