OpenAI reportedly completed a $7 billion tender offer for staff

OpenAI has reportedly bought back $7 billion worth of shares from employees at the privately held frontier AI lab, part of an effort to give its workforce liquidity on their stock compensation. Bloomberg, which first reported the deal, said the tender valued OpenAI at $852 billion — the same figure as its most recent fundraising round in March, which added $122 billion to the company’s war chest.

OpenAI also filed confidentially with the U.S. Securities and Exchange Commission in June to prepare for a potential initial public offering later this year. But a tender offer, rather than a push toward a public listing, suggests an IPO may not be forthcoming soon. As more tech companies stay private for longer than earlier generations of startups, private tenders have become a useful way for firms to let employees realize the value of their stock compensation without the difficulties that come with going public. OpenAI did not respond to a request for comment by publication time.

The timing follows a candid note from CEO Sam Altman last month, who wrote that OpenAI “did not have our best 12 months ever, which is mostly my fault, but we are about to have our best 12 months to date.” Firms preparing to go public typically want strong financial results to bring in investors, and the Wall Street Journal reported in April that OpenAI missed its internal financial goals.

OpenAI’s rapid growth and popular products are likely to generate massive interest in public markets. But the potential debut of rival Anthropic — which was reportedly profitable earlier this year — gives OpenAI reason to make sure it puts its best face forward first. The tender could be another signal that the much-anticipated offering will wait for OpenAI’s newer strategy of paring down its bets and focusing on its enterprise business to gain traction.

Why it matters

A private tender instead of a public filing suggests OpenAI wants its financials and enterprise business further along before facing public-market scrutiny — pressure that only grows if a profitable Anthropic reaches the public markets first.