OpenAI buys back $7 billion of employee shares in tender offer
The ChatGPT maker bought back shares from current and former employees rather than tapping outside investors for the tender offer. The deal valued the startup at $852 billion, unchanged from its most recent funding round.
OpenAI has finalized a tender offer allowing employees to sell approximately $7 billion worth of their shares, ahead of a potential Wall Street debut, according to sources familiar with the matter. The company purchased the shares directly from current and former employees, rather than seeking funding from outside investors, two anonymous sources disclosed.
OpenAI valued the AI startup at $852 billion, a figure that remains consistent since its recent funding round. Private AI companies typically grant employees the option to cash out a portion of their shares, and OpenAI has previously allowed investment firms like Thrive Capital and SoftBank Group Corp. to buy back stock from employees.
The company did not respond to requests for comment. In March, OpenAI raised $122 billion from major tech companies and venture capital firms. In June, the AI developer confidentially filed paperwork for an initial public offering. Throughout the year, OpenAI has faced intense competition with Anthropic PBC, a rival that has gained significant ground in valuation and is now potentially on track to go public before OpenAI.
Written by urgent.news from Economic Times Tech's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
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