SoftBank seeks greater OpenAI ownership with $1.5B tender offer
SoftBank increases stake in OpenAI, fueling AI ambitions
OpenAI has launched a $1.5 billion tender offer, allowing employees to sell shares to Japan's SoftBank, marking a significant step for the Japanese tech conglomerate in increasing its stake in the renowned AI company.
The tender offer, previously unreported, gives OpenAI employees until December 24 to decide whether they wish to participate, according to CNBC.
SoftBank's founder and CEO, Masayoshi Son, pushed for a larger stake after the company invested $500 million in OpenAI’s latest funding round.
SoftBank’s AI ambitions
This move reflects Son's long-standing focus on artificial intelligence. At a recent conference, he shared plans to reserve "tens of billions of dollars" for innovative AI projects. SoftBank has previously invested in Apple, Alibaba, and Arm, and through its Vision Fund 2, it has backed AI startups such as Glean, Perplexity, and Poolside.
The investments in OpenAI align with SoftBank’s strategy of placing capital into resource-intensive AI projects. Despite SoftBank’s involvement, OpenAI continues to demonstrate its ability to attract significant funding. The company’s valuation has surged to $157 billion, supported by $13 billion in investments from Microsoft and an additional $6.6 billion raised during the latest round led by Thrive Capital, with support from Nvidia and SoftBank.
Employees offered rare liquidity
The tender offer allows OpenAI employees who have held restricted shares for at least two years to sell them at $210 per share, matching the company’s latest valuation. This mechanism is vital for companies seeking alternatives to maintain employee satisfaction while delaying public listings. Such sales give employees an opportunity to monetize their equity, particularly as OpenAI has no immediate plans for an IPO.
Previously, OpenAI adhered to strict policies regarding secondary stock sales, which limited employees' access to liquidity. However, the company has since revised its approach, addressing growing employee concerns about equity restrictions.
