OpenAI Finalizes $6.6 Billion Secondary Share Sale
OpenAI has completed a $6.6 billion secondary share sale, allowing current and former employees to sell their stock at a record $500 billion valuation. This move makes OpenAI the most valuable privately held company in the world, surpassing SpaceX’s valuation of $456 billion.
Key Details of the Sale
Initially, OpenAI authorized up to $10.3 billion in shares for the sale, raising its target from $6 billion. However, only about two-thirds of the authorized amount was sold. The remaining unsold shares reflect strong internal confidence in the company’s long-term growth potential.
The share sale was offered to eligible employees who had held their shares for over two years. This marks OpenAI’s second major tender offer in less than a year, following a $1.5 billion transaction last November.
Impact on the AI Industry
The transaction highlights the increasing demand for secondary sales among leading private companies like OpenAI, SpaceX, Stripe, and Databricks. Such sales allow employees to cash out their equity without requiring an IPO.
Additionally, the sale arrives amid fierce competition for AI talent as major tech companies strive to attract top researchers. By enabling employees to benefit financially while remaining with the company, OpenAI strengthens both retention and morale at a crucial time for the industry.
