OpenAI, the company that owns ChatGPT, is offering its employees an unprecedented opportunity to sell approximately $1.5 billion in shares to SoftBank, marking a significant moment for the AI startup’s workforce and investors.
The tender offer allows current and former OpenAI employees to cash out their shares at a price of $210 per unit, matching the company’s recent $157 billion valuation. Employees have until December 24 to decide whether to participate in the sale, which will be financed by SoftBank’s Vision Fund 2.
This move represents a dramatic shift from OpenAI’s previous restrictions on stock sales. Employees who were granted restricted stock units at least two years ago can now equally participate in the tender offer, providing much-needed liquidity in a market where traditional IPO routes remain challenging.
The deal comes on the heels of SoftBank’s $500 million investment in OpenAI last October, reflecting CEO Masayoshi Son’s aggressive strategy to expand his company’s AI portfolio. OpenAI, backed by Microsoft, has seen remarkable growth, boasting 250 million weekly active users since launching ChatGPT.
Despite its success, OpenAI faces significant financial challenges. The company is projected to incur $5 billion in losses in 2024 against revenues of $3.7 billion, having raised over $13 billion from investors including Microsoft, Thrive Capital, Nvidia, and now SoftBank.
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As the generative AI market continues to surge—with predictions of generating $1 trillion in revenue within a decade—this share sale underscores OpenAI’s strategic maneuvering in an increasingly competitive landscape.