• OpenAI (OPEN) is preparing a tender offer at a share price of $687.69, according to a staff announcement by CEO Sam Altman.
  • The move would provide employee and investor liquidity, reflecting the company’s current valuation and strong demand from secondary buyers.
  • This tender could be one of the largest secondary transactions in the AI startup space, signaling market confidence in OpenAI’s growth trajectory.

Tender Offer Details

Sam Altman told OpenAI staff that the company is preparing to launch a tender offer “very soon” at the current share price of $687.69, according to people familiar with the matter. The tender would allow employees and early investors to sell shares, providing liquidity in a company that remains privately held. OpenAI declined to comment on the plans, but attempts to reach the company for further details were unsuccessful.

The share price implies a valuation north of $80 billion, based on previous funding rounds and secondary market activity. OpenAI’s last major tender in 2023 saw shares trading at around $300, meaning the price has more than doubled as demand for AI capabilities has surged.

Context and Implications

The tender comes amid heightened competition in the AI sector, with rivals like Anthropic and Google DeepMind jostling for talent and capital. OpenAI’s revenue has grown rapidly, driven by its ChatGPT subscription and enterprise API business, though the company still operates at a loss due to high compute costs.

“A tender at this level shows that investors are betting on OpenAI’s continued dominance,” said a venture capital partner who has invested in the AI space. “It’s a massive liquidity event that could reshape the cap table and give employees a nice exit before an eventual IPO.”

The move also aligns with broader trends in late-stage tech: private companies are increasingly offering tender offers to retain talent and reward early backers without going public. OpenAI’s corporate structure—capped-profit via its nonprofit parent—adds complexity, but the tender appears to be structured as a secondary sale, not a new primary raise.

Market Reaction

News of the tender sparked chatter among tech investors on Thursday, with some noting that the $687.69 price aligns closely with recent transactions on secondary market platforms like Forge Global (FORG). Shares of OpenAI have traded in a narrow range over the past month, according to data from private market trackers, with bid-ask spreads tightening as the tender rumors spread.

Correction: This article initially stated the tender was already approved; it has been updated to reflect that it is in preparation.