Despite the turmoil within OpenAI in the last couple of weeks, the company is going ahead with its tender offer. In fact, employees will now have one extra month to sell their shares if they so wish. The tender offer will value OpenAI at $86 billion and employees can now opt in for sale of shares till 5 January 2024.
Employees will be allowed to sell their shares to external investors. The tender offer is being led by Thrive Capital. While no new equity will be issued, investors will purchase employees’ units and give them a chance to liquidate their shares.
This $86 billion round is thrice as big as the fundraising round held in April when the company was valued at about $28 billion.
OpnAI has been grabbing headlines ever since its CEO, Sam Altman was ousted unceremoniously on 17 November 2023, due to disagreements over the pace of developing and monetising artificial intelligence. Following his unexpected ouster, almost all the employees of OpenAI had threatened to quit if he wasn’t brought back and if the current board members failed to resign. Altman himself had indicated that he would consider returning if the board that had fired him was dissolved. However, OpenAI had appointed Emmett Shear as new interim CEO. Altman, in the meantime, was roped in by Microsoft to head their inhouse AI team. Many employees from OpenAI were reportedly considering joining him there. In short, there was utter chaos within the organisation and uncertainty gripped the workforce.
Then there was a twist, with the mass resignation threat having an impact on the management! OpenAI not only agreed to reinstate Altman as CEO but also appointed new board members.
