OpenAI Is Now Worth More Than Goldman Sachs and Netflix Combined — Here’s What That Means

OpenAI is nearing a funding round that could value the company at over $850 billion, putting it among the world’s most valuable companies. What does this mean for Microsoft (NASDAQ:MSFT | MSFT Price Prediction), Alphabet (NASDAQ:GOOGL), and every other player in the AI ecosystem?

The $100B Raise in Context

If completed, this would be the largest private funding round in history. The valuation puts OpenAI ahead of most S&P 500 members. For perspective, Goldman Sachs trades at roughly $275 billion, Netflix at $325 billion, and Meta Platforms at $1.6 trillion. OpenAI’s valuation has surged dramatically in recent years.

The capital will fund compute infrastructure, talent acquisition, international expansion, and R&D. This mirrors SpaceX’s strategy of using massive private raises to outpace competitors before they can catch up.

What It Means for Microsoft

Microsoft holds a ~$135 billion investment representing approximately 27% of OpenAI on an as-converted diluted basis. OpenAI revenue flows largely through Azure, and OpenAI has contracted to purchase an incremental $250 billion of Azure services, providing a massive revenue floor. In addition, OpenAI signed a deal where 20% of total company revenue will go to Microsoft through 2032.

Microsoft’s stock is down 17.4% year-to-date despite strong cloud performance. The company reported $81.27 billion in Q2 FY2026 revenue, with Azure growing 39% year-over-year. CEO Satya Nadella stated that “Microsoft has built an AI business that is larger than some of our biggest franchises.”

The valuation surge validates Microsoft’s OpenAI bet but introduces risk. An OpenAI at this scale could eventually IPO and compete directly with Microsoft’s AI products. Microsoft’s $29.88 billion in Q2 capital expenditures reflects the infrastructure arms race underway.

What It Means for Google

Google faces OpenAI as its most direct competitor. Google Cloud grew 48% year-over-year in Q4 2025 to $17.7 billion, while the company is committing $175 to $185 billion in 2026 CapEx to compete. CEO Sundar Pichai highlighted that “Gemini 3 was a major milestone” with the Gemini app reaching over 750 million monthly active users.

While Google has successfully blunted much of the discussion around OpenAI ‘disrupting’ Google Search, there is the risk that search metrics could begin trending down in 2026 and put pressure on Alphabet’s stock price. Reddit sentiment reflects this anxiety, with posts like “Google and AI, Why I think it’s in a great danger of blowing it’s own feet” gaining traction.

Google’s stock is down 3.1% year-to-date.

The Broader AI Race

A massive raise means OpenAI can now compete on infrastructure with hyperscalers. Reports from OpenAI’s funding round have the company projecting $600 billion on computing resources through 2030. Obviously, $100 billion is less than this number. However, keep in mind the company will likely file for a massive IPO in the next year that will bring in another windfall and will increasingly pour revenue generated through their products back into AI computing.

Prediction markets show only a 33% probability OpenAI reaches $1 trillion valuation by year-end. For startups like Anthropic, xAI, and Mistral, this raise sets a daunting benchmark. The next question will be how aggressively Anthropic pursues its own IPO. The company has been gaining market share and scaling revenue much faster than OpenAI. It’s also clear the leaders of both companies simply don’t like each other. 

For Microsoft and Google, OpenAI’s rise is both their greatest opportunity and most formidable threat.