SoftBank Offers $1.5 Billion in OpenAI Stock Buyout for Employees Amid AI Gold Rush

OpenAI employees are getting an opportunity to cash in on their equity, as the company facilitates a $1.5 billion tender offer led by SoftBank through its Vision Fund 2. The deal allows current and former employees to sell shares at $210 per unit, aligning with OpenAI’s most recent valuation of $157 billion, according to sources.

SoftBank’s Expanding AI Ambitions

This investment bolsters SoftBank’s growing focus on artificial intelligence, led by its visionary CEO Masayoshi Son. The company’s AI portfolio already includes ventures like Glean, Perplexity, and Poolside, alongside a historic association with ARM and major stakes in tech giants such as Apple, Qualcomm, and Alibaba. SoftBank’s AI push reflects Son's commitment to backing transformative technologies, with the tender offer offering a larger slice of OpenAI to the tech conglomerate.

Son’s pursuit of a bigger stake began after SoftBank's $500 million investment in OpenAI’s October funding round. While OpenAI remains private and has no immediate IPO plans, these secondary sales serve as a vital liquidity source for its employees amid a high-growth but capital-intensive phase.

Key Tender Offer Details

• Eligibility: Current and former employees with restricted stock units (RSUs) granted and held for at least two years can participate.
• Pricing: Shares will be sold at $210 per unit, matching the latest funding round valuation.
• Deadline: Employees have until December 24 to decide whether to sell their shares.

This tender offer comes amid increased competition in generative AI, where OpenAI vies with startups like Anthropic and giants like Google. Despite its challenges, OpenAI is a leader in the space, fueled by massive funding, including $13 billion from Microsoft and $6.6 billion in its latest round.

The Bigger Picture

The tender offer reflects a growing trend among private tech firms, where secondary share sales provide liquidity to employees as IPO markets remain sluggish. Notably, Databricks recently executed a similar move.

For OpenAI employees, this is a shift from past policies, where access to liquidity was limited and the company retained significant control over secondary sales. Now, with annual tender offers, OpenAI has aligned its approach with employee expectations and the competitive nature of the AI sector.

Generative AI Market Outlook

As business spending on generative AI grows, predicted to exceed $1 trillion in revenue within a decade, OpenAI remains well-positioned despite fierce competition. Its continued innovation, such as introducing a search feature within ChatGPT, reflects its efforts to rival search giants like Google and Microsoft.

With SoftBank’s backing and this landmark employee tender offer, OpenAI reinforces its position as a cornerstone of the generative AI revolution.