Open AI now eyeing a staggering half a trillion dollar valuation after early stage talks with investors about an employee's stock sale.

McKenzie Sigalos has that news for today's tech check. Hey, Mac.

Hey, Leslie. So this deal, which would allow both current and former employees to sell vested shares, would put Open AI ahead of SpaceX as the most valuable

private company in the world and make it worth more than Netflix or ExxonMobil, marking one

of the fastest climbs to that level in tech history.

Now, sources tell me that these talks are still early, but at this point, it looks like Thrive

Capital, which is already on the startup's cap table, would potentially lead the secondary sale. Now, this comes as OpenAI projects

annual recurring revenue above $20 billion this year. ChatGBTGBT has 700 million weekly

active users, and the company begins opening its models to developers for the first time

since 2019.

Rival Anthropic is also in talks to raise funding at a $170 billion valuation,

underscoring just how quickly these valuations are moving across the AI industry.

It was only seven months ago that Open AI last held a major employee's stock sale that valued

the company at $157 billion.

Since then, they've signed a deal with SoftBank, which nearly doubled its valuation.

And without a near-term IPO in sight, another secondary sale could be a good way to reward

and retain talent in the midst of these AI talent wars.

It's a bet that it's willing to make, even as the company bleeds cash,

burning an estimated $8 billion a year as it spends big on chips and new data centers.

Now, the startup isn't projected to be cash flow positive until 29, according to reports,

a reminder that investors are still willing

to price the company like a tech giant long before it turns a profit. Guys?

...