OpenAI has reached a valuation of $500 billion after a secondary share sale, making it the world’s most valuable startup, surpassing SpaceX. The company raised about $6.6 billion from investors including SoftBank, Thrive Capital, Dragonair, MGX, and T. Rowe Price. That’s a big jump from its previous valuation of $300 billion.

The deal comes as OpenAI, led by Sam Altman, continues to sign big partnerships with companies like Oracle and SK Hynix, although it’s not yet profitable. The company is in talks with Microsoft to transition to a more traditional nonprofit structure, while its non-profit parent still retains control.

OpenAI faces stiff competition from the likes of Google, Anthropic, and Meta, which are investing heavily in AI and hiring top talent. OpenAI is using stock sales as an incentive to retain employees. It has also launched new products, including free AI models and its most advanced system, GPT-5, to strengthen its lead in the crowded AI competition.