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OpenAI Employees Given Opportunity to Cash Out Stock Through SoftBank
OpenAI has initiated a private stock sale in collaboration with SoftBank Group, enabling both current and former employees to sell their shares at a price of $210 each. This arrangement, confirmed by a source to Fortune, represents a significant moment for staff wishing to monetize their equity in the rapidly growing company.
The tender offer specifically targets OpenAI employees who received stock over two years ago, coinciding with the company’s valuation, which was nearly $20 billion at that time. Following a recent fundraising effort that raised $6.6 billion in October, OpenAI’s valuation surged to approximately $157 billion, an almost eightfold increase.
SoftBank has expressed its intention to purchase up to $1.6 billion worth of stock from eligible employees. The established share price of $210 reflects this new valuation, thus providing a lucrative opportunity for employees to benefit from OpenAI’s explosive growth.
Current employees will have the chance to sell shares valued up to $10 million. However, if demand exceeds the $1.6 billion cap, priority will be given to current employees over former ones when it comes to liquidation.
Due to this structure, some former employees may find it difficult to fully cash out under the current tender offer. Nevertheless, OpenAI has ensured that all staff, regardless of their current status, are entitled to sell at least $2 million in stock if they choose to participate in this offer.
The deadline for shareholders to make their decision about selling shares is December 24, allowing a limited window for consideration.
SoftBank’s involvement with OpenAI began with a substantial investment of approximately $500 million in October. The company currently employs over 2,000 individuals. Recent analyses reveal that salaries for 86 employees under specialized visas range from $145,000 to $530,000, illustrating the competitive compensation landscape at OpenAI.
Source
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