Bloomberg Intelligence OpenAI Valuation Soars to $500 Billion, Topping Musk’s Space X
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Oct 2, 2025 OpenAI's valuation skyrockets to $500 billion after a significant employee stock sale, making it the largest startup globally. Tensions arise as it surpasses Elon Musk's SpaceX. Tesla reports record vehicle deliveries fueled by a rush for electric cars before tax credits expire. Warren Buffett's Berkshire Hathaway makes waves with a $9.7 billion acquisition of Occidental Petroleum's petrochemical business. Meanwhile, McDonald's embarks on a massive expansion, aiming for 50,000 locations to adapt to shifting populations, particularly in Texas.
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How The Secondary Worked
- Ed describes the mechanics of the employee tender and eligibility rules for sellers.
- He notes investors sought $10B but purchased about $6.6B of shares from employees.
Valuation Driven By Employee Secondary
- A $500B valuation came from a secondary tender where investors bought $6.6B of employee shares, not new capital into OpenAI.
- The price reflects investor belief in future upside despite many employees choosing to hold their equity.
AI Valuations Fuel Rivalry With Musk
- OpenAI's $500B price surpasses SpaceX and highlights competition tied to Elon Musk's XAI ambitions.
- Musk and Sam Altman have public friction as both pursue high AI valuations and fundraising.