OpenAI's Valuation Soars to $500B as Computing Power Surges to 20GW
OpenAI, the trailblazing AI research company, has recently sealed major deals with tech giants, beefing up its computing power to over 20 gigawatts (GW). This comes hot on the heels of the company's valuation skyrocketing to $500 billion in early October, making it the world's most valuable private company.
The valuation surge was driven by a significant secondary market transaction. A consortium comprising Thrive Capital, SoftBank, Dragoneer Investment Group, MGX from Abu Dhabi, and T. Rowe Price purchased shares worth around $6.6 billion from current and former OpenAI employees. This deal, closed in October 2025, reflects the growing confidence and investment in OpenAI's potential.
OpenAI's computing power expansion is astonishing. The deals with AMD, Nvidia, Oracle, and CoreWeave have resulted in a combined value of approximately $1 trillion this year alone. This power, equivalent to 20 nuclear reactors, is estimated to cost around $50 billion per gigawatt. To fund this expansion, OpenAI has been raising substantial equity capital and exploring debt markets.
While OpenAI's valuation and computing power continue to grow, not everyone is convinced. Jeff Bezos has publicly expressed concerns, labeling the AI investment boom as a 'bubble'. Despite these warnings, OpenAI's trajectory remains upward, with analysts like Gil Luria estimating potential annual losses of around $10 billion, a testament to the company's ambitious and costly pursuits in AI development.
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