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- The private market has a new #1
The private market has a new #1
Noel Moldvai
October 02, 2025
TL;DR. OpenAI just passed SpaceX with a $500B valuation, becoming the most valuable private company in the world. As if that weren’t enough, it also launched a TikTok-style app this week that lets users create biometric video cameos, but it was quickly flooded with hyper-realistic deepfakes of CEO Sam Altman and widespread copyright issues. Meanwhile, legendary game maker EA Sports is reportedly nearing a record-setting $50B deal to go private in what could be the largest leveraged buyout in history.
OpenAI overtakes SpaceX as the most valuable private company with $500B valuation
OpenAI has completed a secondary share sale that pushes its valuation to $500B, up from $300B in April. The deal, which makes OpenAI the most valuable private company and surpasses SpaceX, allows employees to cash out amid aggressive poaching efforts from rivals like Meta. Investors including SoftBank, Thrive Capital, and T. Rowe Price participated in the sale, with employees offloading approximately $6.6B in shares. The strong participation signals that investor demand for AI exposure remains red-hot.
OpenAI is launching its own app, Sora, to compete with TikTok
OpenAI unveiled Sora 2, an upgraded video generator with improved physics realism, alongside a TikTok-style app that lets users insert themselves into AI-generated videos. The app uses biometric data for its "cameo" feature and will be free at launch. Within hours of release, the app was reportedly flooded with hyper-realistic deepfakes of CEO Sam Altman and widespread copyright issues, raising immediate concerns around safety, consent, and the ethics of AI-generated media.
EA Sports going private in $50B deal
Electronic Arts, the video game maker behind “FIFA,” “The Sims” and “Battlefield,”, is reportedly nearing a $50B private buyout led by Silver Lake, which would mark the largest leveraged buyout in history. The move reflects rising private equity interest in gaming amid stable revenues and the industry's strong long-term outlook.
The rise of AI in secondary markets
AI is rapidly reshaping how investors navigate the private secondary market. From analyzing sentiment to pricing private assets more accurately, technologies like machine learning and natural language processing are driving faster, smarter decisions. But with that innovation comes risk, and regulation is struggling to keep up.
The truth about SPVs in AI deals
A recent Business Insider piece warns retail investors about SPVs in top private companies, but is the concern warranted? While SPVs aren’t perfect, they remain one of the few ways non-institutional investors can get exposure to late-stage private companies. Until access improves, they’re better than being locked out entirely.
Quick Takes
Cheerio! Until next week.
-Noel