OpenAI completes $7 billion employee tender offer

OpenAI completed a $7 billion employee tender offer this week, the company confirmed Friday, allowing staff to sell shares in a private market as it prepares for its next funding round. The tender, led by existing investors, values the company at $157 billion, according to two people familiar with the deal. Employees were offered the chance to cash out a portion of their equity, with the process closing before the end of the month.

This tender comes as OpenAI races to stay ahead in the cutthroat AI race. Rivals like Google and Meta are pouring billions into their own AI efforts, while startups and legacy firms alike are racing to build the next big thing. OpenAI’s last funding round in 2023 valued it at $86 billion, but its rapid growth—and high costs—have made it clear that more capital is needed. A tender like this helps keep top talent on board while giving investors a stake in the company’s future.

Employees who took part could sell shares at $157 billion valuation, a big jump from 2023. Some staffers cashed out tens of millions, while others took smaller amounts. The tender was oversubscribed, meaning more employees wanted to sell than shares were available. That’s a sign of how much OpenAI’s value has grown—and how eager employees are to lock in some gains.

What happens next could shape the AI industry. OpenAI is expected to raise another $5 billion to $10 billion in the coming months, which could push its valuation past $200 billion. But the tender also shows how much pressure there is on the company to keep growing. If OpenAI stumbles, the fallout could be huge—not just for its employees, but for the entire AI sector.