OpenAI reportedly completed a $7 billion employee tender offer
San Francisco's housing market is in trouble again.
OpenAI completed a $7 billion share buyback from its employees, valuing the company at $852 billion, the same valuation as its most recent fundraising round. This tender offer allows employees to convert their stock compensation into cash without waiting for a public offering. The company had previously filed confidentially with the Securities and Exchange Commission to prepare for a potential IPO later in the year, but the tender offer suggests a public debut may not happen soon. The move comes as many tech companies remain private longer than previous generations of startups, using private tenders as an alternative way for workers to realize the value of their equity.
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Also reported by TechCrunch and The Verge
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