11 articles · Updated · The Wall Street Journal · May 11
More than 600 current and former staff sold shares last October, with about 75 hitting the new $30 million per-person cap.
OpenAI tripled the limit from $10 million after investor demand, and many workers who joined after ChatGPT launched were able to sell for the first time after a two-year wait.
Some employees put remaining shares into donor-advised funds, while the windfall highlights how private AI companies are creating multimillionaires before IPOs and adding to wealth pressures in San Francisco.
Facing a $57 billion annual burn rate, is OpenAI’s race to AGI a revolution or the world's most expensive gamble?
With Elon Musk suing over its mission, can OpenAI justify its trillion-dollar valuation while abandoning its non-profit roots?
As AI wealth sends home prices soaring, is San Francisco witnessing a new dream or an economic nightmare?
OpenAI recently completed a major secondary share sale, allowing current and former employees to cash out some of their stock. This move, common among private tech companies, helps update OpenAI’s valuation and reward long-term staff, which is crucial for talent retention as competitors like Meta aggressively recruit AI talent. The share sale has pushed OpenAI’s valuation to a record $500 billion and comes as the company considers restructuring its capped-profit model, potentially paving the way for a future IPO. These strategic steps highlight OpenAI’s rapid growth and its efforts to stay ahead in the competitive AI landscape.