OpenAI Expands Its Secondary Share Sale to Reach a Value of $10.3 Billion
Informed sources revealed that OpenAI has significantly expanded the size of its secondary share sale, with a total value expected to be around $10.3 billion, after initially planning to sell shares worth only $6 billion.
CNBC reported from a source familiar with the offering saying: "The emerging artificial intelligence company is allowing eligible current and former employees the opportunity to sell shares worth approximately $10.3 billion, an increase from the $6 billion it initially targeted."
The same source added that the company's valuation will be estimated at $500 billion in this deal, which aligns with expectations. The last funding round OpenAI conducted earlier this year valued the company at $300 billion, showing a tremendous increase in its valuation.
According to the source, the offer was presented to employees on Wednesday, and employees who have held company shares for more than two years were given until the end of September to decide whether to participate in the sale, with the deal expected to close next month.
Among the key investors participating in the purchase of these shares, according to the source for CNBC, are: SoftBank, Dragoneer Investment Group, Thrive Capital, MGX in Abu Dhabi, and T. Rowe Price.
This move is part of OpenAI's strategy, which follows a similar approach to a few high-value tech startups, such as SpaceX, Stripe, and Databricks, which conduct periodic secondary sales to allow employees the opportunity to sell part of their shares and relieve financial pressure on them.
It is worth mentioning that this is not the first time OpenAI has allowed employees to sell shares; last November, it allowed its employees to sell shares worth approximately $1.5 billion as part of an acquisition offer with SoftBank.
