As the holiday season approaches, approximately 400 current and former OpenAI employees are poised to receive multi-million dollar paydays, thanks to a special stock sale orchestrated by the San Francisco-based AI company in collaboration with Japan’s SoftBank Group.
In a tender offer, SoftBank will purchase OpenAI stock from eligible employees and former staff at a price of $210 per share, a source familiar with the deal revealed. This transaction provides a rare opportunity for OpenAI insiders to liquidate some of their equity in the company, which has seen its valuation soar to $157 billion over the past year.
The tender offer allows for the purchase of up to $1.6 billion in stock, but only those who have held restricted stock units for more than two years are eligible to participate. Interested shareholders must decide whether to sell, and how much, by December 24. While OpenAI employs over 2,000 people, the exact number of eligible participants and shares has only recently been confirmed.
For many, the deal represents a lucrative holiday bonus. Each eligible participant can sell up to $10 million in vested stock. Current employees will be given priority if the offer is oversubscribed, the source noted. While all eligible current employees can sell the maximum $10 million, former employees may face limitations. If demand exceeds the available shares, former employees are guaranteed the opportunity to cash out at least $2 million in stock, though they may not be able to sell the full $10 million.
According to the source, OpenAI has set the total value of stock available for sale at $2 billion, with SoftBank committing to purchase $1.6 billion. This leaves up to $400 million in stock potentially unsold, should there be insufficient demand.
For SoftBank, the deal presents an opportunity to expand its stake in OpenAI following its earlier investment in October’s $6.6 billion fundraising round, led by Thrive Ventures. The tender offer’s $210 per share price reflects OpenAI’s $157 billion valuation at that time.
The transaction also highlights SoftBank’s ongoing focus on artificial intelligence. Recently, SoftBank founder and CEO Masayoshi Son announced plans for a $100 billion investment in AI infrastructure projects in the U.S. over the next four years.
OpenAI has made adjustments to the rules of this tender offer in response to criticism of previous offerings that made it harder for former employees to participate, particularly those who had joined competitors. The company announced in June that it had revised its secondary share sale policies to ensure equal participation from both current and former employees.
A noteworthy aspect of the current offer is the potential involvement of key figures who left OpenAI to launch rival AI company Anthropic in 2021. CEO Dario Amodei, President Daniela Amodei, and Head of Policy Jack Clark may meet the criteria to participate in the tender offer, though Anthropic has declined to comment on whether any of its employees will take part.
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