OpenAI has reportedly wrapped up a major secondary share transaction that allows current and former employees to sell shares worth nearly $7 billion, adding another major development to the artificial intelligence company’s preparations for a possible public listing. Rather than bringing in outside investors to fund the tender offer, the Sam Altman-led company itself repurchased the shares from existing and former employees, Bloomberg reported. Despite the size of the transaction, OpenAI’s valuation remained unchanged at $852 billion following the deal.
The latest transaction shows the growing importance of employee share sales as moves closer to a potential initial public offering. Secondary transactions allow employees and former staffers to cash out portions of their holdings without waiting for the company to list its shares publicly.
The reported $7 billion transaction follows a series of similar deals. OpenAI completed a $6.6 billion tender offer in October at a valuation of $500 billion, while an earlier tender offer in 2024 was valued at $1.5 billion.
Potential IPO Timeline Remains Unclear
OpenAI has taken steps towards a possible stock market debut, including a confidential filing of its prospectus with the US Securities and Exchange Commission in June. However, the company has not publicly committed to a specific date for an IPO.
Reports have suggested that the listing could be pushed into 2027, despite earlier expectations surrounding a potential 2026 debut.
According to PitchBook, OpenAI CFO Sarah Friar preferred waiting until 2027, while Altman was more keen on a September 2026 listing at a valuation of $1 trillion, the report states.
SpaceX IPO Could Influence OpenAI’s Plans
Market conditions may also play a role in OpenAI’s eventual listing decision. Reports have indicated that activity surrounding SpaceX’s public debut has raised questions about how investors might respond to a massive technology offering.
For OpenAI, the key issue will be whether its enormous spending on artificial intelligence infrastructure and computing capacity can eventually translate into sustainable profitability.
A public listing would also expose the company’s private-market valuation to far greater scrutiny. Investors would likely examine its financial performance, capital requirements, growth prospects and ability to convert its rapidly expanding AI business into durable earnings.