The painting, entitled Beautiful Beautiful George Michael Love Painting, was auctioned to help raise funds for HIV and Aids prevention and awareness.
The work on canvas went under the hammer in Texas, at a charity gala hosted by the Goss-Michael Foundation, which was founded by Michael and his former partner Kenny Goss.
Goss posted an image of the art on Instagram, saying: "Amazing result of $580,000 for this painting" he also thanked Damien Hirst for creating the artwork for charity.
Hirst, known for his series of works in which he pickled animals including a shark and sheep, depicted the former Wham! star in household gloss in the colourful piece.
Among his most famous works is his diamond-encrusted human skull titled For The Love Of God.
The skull, which is covered by 8,601 flawless diamonds, was believed to have had a price tag of around £50 million.
A coroner's report concluded earlier this month, confirming the singer died from natural causes.
The music icon's body was found at his Oxfordshire home on Christmas Day.