OpenAI employees set to sell $1.5 billion in stock to SoftBank

OpenAI is offering employees the chance to sell shares worth approximately $1.5 billion in a new tender offer facilitated by Japanese tech giant SoftBank, according to reports. This initiative enables current and former employees to cash out their shares, while allowing SoftBank to significantly expand its stake in the artificial intelligence leader.

Employees have until December 24 to decide whether to participate in the tender offer, which comes amid heightened interest from SoftBank's CEO, Masayoshi Son. Following a $500 million investment in OpenAI’s previous funding round, Son was reportedly keen to increase his company's stake in the firm. The tender offer, conducted through SoftBank’s Vision Fund 2, is independent of OpenAI’s broader discussions about potentially restructuring as a for-profit entity, say reports.

The price of $210 per unit aligns with OpenAI’s recent valuation, offering shareholders an opportunity to monetize their equity. Eligible participants include employees who have held their restricted stock units for at least two years.

SoftBank’s interest in OpenAI underscores its strategy to deepen investments in the AI sector. Vision Fund 2, which has backed AI startups such as Glean, Perplexity, and Poolside, reflects Son’s focus on transformative technologies. At a recent conference, Son revealed his intent to reserve “tens of billions of dollars” for AI-related opportunities, marking OpenAI as a key element in this vision.

OpenAI has seen its valuation soar to $157 billion within two years of launching ChatGPT, thanks to robust funding rounds. The company has secured approximately $13 billion from Microsoft and an additional $6.6 billion in its latest funding round, which included Thrive Capital, Nvidia, and SoftBank. With $10 billion in liquidity, including a $4 billion revolving credit line, OpenAI continues to grow, despite forecasting $5 billion in losses on $3.7 billion in revenue this year.

With no IPO plans on the horizon, tender offers like this have become vital for tech companies to provide liquidity to employees and reduce reliance on public markets. As OpenAI continues to dominate the AI landscape, this secondary stock sale offers stakeholders a rare chance to convert paper wealth into tangible returns.