OpenAI Repurchased $7 Billion in Employee Shares
OpenAI has completed a share buyback deal allowing employees to sell approximately $7 billion in equity. The transaction was executed at a valuation of $852 billion.
Ahead of a potential IPO, OpenAI has completed a deal allowing its employees to sell shares totaling approximately $7 billion, according to a Bloomberg report citing people familiar with the matter. The AI giant conducted the share buyback from former and current employees directly, rather than turning to external investors for a tender offer.
The deal was executed at a valuation of $852 billion, consistent with the company's recent funding round. OpenAI declined to comment on the report.
In March, the company raised $122 billion from major technology firms and venture capital funds, and in June, it announced the filing of a confidential prospectus in preparation for an IPO. However, The New York Times reported in late June that the company is considering delaying the IPO due to volatility in the technology sector. The current tender offer is seen as further evidence of the company's intention to postpone its market debut.
Tender offers have become an effective mechanism for private companies to allow employees to exercise their stock grants without the complexities typically associated with a public listing. The company has also recently faced a wave of executive departures. The most recent is Chloe Baklar, head of ethics, who resigned after less than a year in the role.
"These have not been our best 12 months, and that is mostly my fault," CEO Sam Altman wrote last month. "But the next 12 months will be our best yet."
