OpenAI Becomes World’s Biggest Private Company
- Peyton Widen
- Oct 7
- 2 min read
Updated: Oct 7
As of October 2nd, 2025, OpenAI is now the world's largest private company. The company is valued at $500B after their most recent valuation. They can calculate this by analyzing OpenAI’s assets, liabilities, future earnings, and market position to determine the company's total economic net worth. This valuation easily makes them more valuable than the previous leading private company, SpaceX, whose value is around $400 billion. While this is a tremendous achievement for OpenAI, it still ranked behind several publicly traded companies like Microsoft, Nvidia, Apple, etc.
The major objective that set them over the edge to increase the value of their company was a deal in which current and former employees sold roughly $6.6 billion worth of shares. It has also increased because of OpenAI’s close partnership with Microsoft, which has helped fuel its growth along with strong revenue from enterprise APIs and licensing deals. The company’s valuation has more than doubled in just the past year and has grown by $200 billion since its last valuation in March of this year, when the company was valued at $300 billion.
Despite OpenAI doing well, it still has some big problems to work through. Government officials are keeping an eye on it because people are worried about how AI is used and how it handles personal data. Other companies like Anthropic and Google DeepMind are also trying to catch up. OpenAI is still doing better than these other companies because it makes strong AI tools and works closely with big partners, which helps the company grow fast and make more money. OpenAI is still projected to grow at a faster rate, as the use of artificial intelligence is only going to become an increasing part of our daily lives.
Sources:
Comments