As reported by CNBC and Reuters, the deal enables current and former employees to cash out restricted stock units issued over two years ago at US$210 per share, matching the company’s recent funding valuation of US$157 billion.
SoftBank CEO Masayoshi Son reportedly pushed for a larger stake in OpenAI following a US$500 million contribution to the company’s last funding round in October. Conducted through SoftBank’s Vision Fund 2, the tender reflects Son’s strategy to deepen investments in leading AI companies, alongside recent bets on Glean, Perplexity, and Poolside.
Employees have until December 24 to participate in the offer, signaling SoftBank’s commitment to AI despite OpenAI’s substantial losses and capital-intensive operations.
The tender offer is unrelated to OpenAI’s reported plans to transition into a for-profit structure, according to sources. With no immediate IPO plans, the tender provides liquidity for employees amid a subdued market for public listings. Such buyouts have gained popularity in private tech firms, easing pressure to go public while allowing employees to monetize their equity.
OpenAI’s valuation has soared since the launch of ChatGPT in 2022, backed by approximately US$13 billion from investors like Microsoft, Nvidia, and Thrive Capital. In October, the company secured US$6.6 billion in funding, bringing its liquidity to over US$10 billion. However, the firm is expected to face US$5 billion in losses this year on US$3.7 billion in revenue, as it competes with players like Google and Anthropic in a rapidly expanding generative AI market projected to surpass US$1 trillion in a decade.
This latest tender reflects OpenAI’s balancing act: meeting employee liquidity demands while navigating high operational costs and intensifying competition. With secondary sales now an annual feature, the company continues to attract investor interest, ensuring its growth trajectory in the fast-evolving world of AI.
