OpenAI buys $7 billion of employee shares before a possible IPO
OpenAI funded the liquidity itself, preserving its $852 billion price while turning private stock into cash for current and former staff.
By Ryan Merket · Published
Primary source: Bloomberg Technology
Why it matters
OpenAI is converting private equity into employee cash without outside buyers or a new valuation increase. That supports retention and IPO preparation while putting the $7 billion liquidity bill on OpenAI.
Sam Altman (@sama)'s OpenAI completed a tender offer for roughly $7 billion of shares held by current and former employees, using its own money instead of bringing in outside investors, Bloomberg reported on August 10th. The transaction kept OpenAI's valuation at $852 billion, the same price set by its March financing.…
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