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OpenAI Employees Cash Out $6.6B in Shares at $500B Valuation

Published
Score
11

Why it matters

OpenAI facilitated a $6.6 billion secondary share sale in which current and former employees liquidated stock at a $500 billion company valuation. The transaction, initially structured as a $6 billion tender offer, expanded to authorize up to $10.3 billion in sales before settling at roughly two-thirds of that ceiling based on employee participation. The deal marks Silicon Valley's largest non-founder employee liquidity event and follows $3 billion in prior employee stock sales since 2021.

The secondary round drew commitments from SoftBank (at least $1 billion), Thrive Capital, T. Rowe Price, Dragoneer, and Abu Dhabi's MGX. Secondary trading platforms including Forge, Hiive, and UpMarket subsequently listed pre-IPO shares at $608–$715 per share, reflecting post-sale valuations between $840 billion and $852 billion. The transaction aligns with OpenAI's restructuring efforts ahead of a potential public offering.

The sale resolves a two-year lockup period that had constrained employee liquidity since prior funding rounds. OpenAI has raised over $178 billion in total funding since ChatGPT's 2022 launch, with recent rounds led by SoftBank and Thrive Capital. The company is reportedly targeting an IPO in late 2026 or 2027 at a potential $1 trillion valuation. Attorneys should monitor the company's public filing timeline and any regulatory scrutiny of the secondary market pricing, which may signal valuation expectations ahead of a formal registration statement.

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