OpenAI Drives Private Tech Boom as 7 AI Startups Hit $1.3 Trillion Valuation Amid AI-Fueled Market Surge

OpenAI is leading a dramatic surge in the private tech market, with seven of the most valuable startups now collectively valued at $1.3 trillion—nearly double their value from just a year ago, according to Forge Global, a platform that tracks private market valuations. The surge follows the 2022 launch of ChatGPT, which ignited a wave of investment and growth across the AI sector. Forge’s valuation assessments are based on a mix of funding rounds, tender offers, and trading activity in private markets. The group includes OpenAI, valued at $324 billion, Anthropic at $178 billion, and Elon Musk’s xAI, which recently raised $10 billion at a $200 billion valuation—up from $150 billion just months earlier. These three companies are at the forefront of the race to build advanced large language models, competing with tech giants like Google and Meta. Databricks, a data analytics leader investing heavily in AI, is valued at $100 billion. The other four companies in the group are SpaceX at $456 billion, Stripe at $92 billion, and Anduril at $53 billion. The defense tech sector, increasingly shaped by AI, has seen such strong momentum that Forge launched a dedicated defense fund to meet growing institutional demand. Since late 2022, the combined value of these seven firms has quadrupled. Forge CEO Kelly Rodriques emphasized that the growth reflects real revenue and expansion, not just speculation. “We've not seen this in the private market ever,” he said. “Companies growing at 100%, 200%, 300% on numbers that are already very large.” The AI boom is reshaping capital flows. So far this year, 19 AI startups have raised $65 billion—77% of all private market funding. With such abundant capital available, many companies see little reason to go public. “If these companies are liquid and can access as much capital as they want, regulation is probably the only thing stopping them from staying private for as long as they’d like,” Rodriques said. Even without public listings, these firms are influencing public markets. Oracle’s stock surged 36% in one day after reporting a major deal with OpenAI. Broadcom also announced a massive partnership with the AI startup, while Microsoft continues to benefit from its significant equity stake in OpenAI. Tech giants including Microsoft, Amazon, Google, and Meta have all increased their capital spending forecasts to meet soaring demand for AI infrastructure. Despite the frenzy, OpenAI’s Sam Altman has voiced caution. At a recent dinner with reporters, he called current valuations “insane” and acknowledged a bubble. But he remains committed to aggressive growth. “You should expect OpenAI to spend trillions on datacenter construction,” he said. “We will spend more aggressively than any company has ever spent on anything… because we have this deep belief in what we’re seeing.”