OpenAI is in early discussions for a secondary share sale that would value the company at $500 billion, a sharp increase from its last valuation and a potential milestone for the artificial intelligence leader. The proposed deal would allow current and former employees to sell a portion of their holdings, capitalizing on investor demand and the company’s surging growth.

The sale, which could raise billions of dollars, has drawn interest from existing investors, including Thrive Capital, who are eager to acquire employee-held shares. The transaction, if completed, would mark a two-thirds increase in OpenAI’s valuation, which stood at $300 billion following a $40 billion financing round led by SoftBank earlier this year.

OpenAI’s push for a secondary sale reflects a common trend among top-tier US startups, offering liquidity to employees as a retention strategy while simultaneously satisfying investors keen to deepen their stakes. The move comes as competition for AI talent intensifies, with companies like Meta aggressively recruiting from rivals, offering multimillion-dollar compensation packages.

The company, led by CEO Sam Altman, has experienced rapid growth since the launch of ChatGPT, becoming a dominant force in AI development. OpenAI recently reported ChatGPT’s weekly active users had surged to 700 million, with daily message volumes crossing 3 billion. It also announced a $6.5 billion acquisition of Jony Ive’s AI device startup, positioning itself for a hardware push.

Despite its impressive ascent, OpenAI faces internal and external challenges. Discussions about its long-term corporate structure are ongoing, particularly with key partner Microsoft. Microsoft, which has invested nearly $14 billion in OpenAI, holds rights to its technology and is in negotiations to redefine its stake and ensure continued access beyond the current agreement, which runs until 2030.

The secondary sale discussions come on the heels of a recent $8.3 billion fundraising round, which was oversubscribed fivefold, highlighting continued investor confidence in OpenAI’s trajectory. The company is also preparing to launch GPT-5, its latest AI model, in a bid to maintain its lead as competitors from China and Silicon Valley ramp up their offerings.

While OpenAI has yet to finalize the employee share sale, the potential deal underscores its meteoric rise and the intense demand for exposure to leading AI innovators. With a valuation of half a trillion dollars, OpenAI would rank among the world’s most valuable private companies.