OpenAI share sale could hit US$8b: The Information
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The news: OpenAI’s plan to allow employees and former staff to sell USD6 billion ($9.34 billion) in private stock to investors could swell by another USD2 billion, according to sources cited by The Information.
The numbers: The outlet reports that the ChatGPT maker will allow current and former employees to sell up to USD8 billion at a valuation of USD500 billion. If finalised, the sale would amount to almost the entire volume of shares sold by the startup’s employees and stakeholders in 2024.
The context: Sources told The Information that OpenAI is still finalising conversations with investors and is aiming to kick off the process for eligible employees and ex-employees to sell shares later next week.
OpenAI’s unusual corporate structure means that employees currently hold units that give them a share in OpenAI’s eventual profits, rather than traditional equity.
Softbank has reportedly committed to buying at least USD1 billion in this employee share sale. The Information reports that OpenAI has also told some investors that Thrive Capital, T Rowe Price and Dragoneer Investment Group have also discussed investing hundreds of millions into the share sale. Their share sale investment would be in addition to their contribution in the ongoing USD40 billion (at a USD260 billion valuation) fundraise.
The source: The Information
