Sevens Report: OpenAI’s $500B Valuation Rekindles AI Bubble Debate
Employee confidence strong, but lofty revenue multiples raise caution
Is OpenAI’s stock sale the latest evidence we’re in an AI bubble?
The Sevens Report said Friday that OpenAI’s latest secondary stock sale, which valued the company at around $500 billion, has reignited debate over whether surging enthusiasm for artificial intelligence reflects confidence or a brewing bubble.
The sale allowed employees to offload up to $10 billion in equity, though only $6.6 billion was ultimately offered — a sign that insiders remain confident in OpenAI’s growth trajectory. Sevens noted that the transaction was a liquidity event, not new fundraising, underscoring strong investor appetite after OpenAI’s first-half 2025 revenue already surpassed full-year 2024 totals.
Still, the valuation implies 25 times expected 2025 revenue of $20 billion, which the firm said demands rapid monetization to justify. “Leadership will have to prove the ability to translate growth into profitability sooner rather than later,” analysts cautioned.
Sevens also warned that fading intraday strength in AI-linked names like Nvidia shows rising risk that the AI narrative could be challenged, potentially triggering profit-taking across tech and the broader equity market.
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