OpenAI prepares $86bn tender offer despite management reshuffle

By: Bohdan Kaminskyi | 01.12.2023, 16:15
OpenAI prepares $86bn tender offer despite management reshuffle
Mariia Shalabaieva/Unsplash

OpenAI continues to prepare for a tender offer in January 2024, which will allow investors to buy back shares in the startup's employees, despite reshuffles in the management and board of directors.

Here's What We Know

According to media reports, the tender offer is valued at $86bn - the same level as reported in October. It does not involve the issuance of new securities.

Instead, Josh Kushner's Thrive Capital venture fund Thrive Capital and other interested investors will buy back existing shares owned mostly by OpenAI employees. This should provide them with liquidity for the securities and monetise their stake in the company.

The $86bn round is three times larger than OpenAI's previous fundraising in April. Back then, the startup was valued at about $28bn.

The suspension of OpenAI CEO Sam Altman had put the deal in doubt. However, his quick recovery resumed the planned processes.

Source: CNBC