OpenAI has completed a $7 billion tender offer, buying back shares from employees of the privately held AI company. The deal, reported by Bloomberg and completed in 2026, valued OpenAI at $852 billion — the same valuation established during its most recent fundraising round in March, which raised $122 billion.
The buyback provides liquidity to OpenAI employees, allowing them to realize the value of their stock compensation without the company needing to go public. With many tech companies staying private longer than previous generations of startups, private tender offers have become a common mechanism for firms to reward employees while avoiding the complexities of a public offering.
OpenAI separately filed confidentially with the Securities and Exchange Commission in June to prepare for a potential IPO later this year. However, the completion of a tender offer may signal that a public debut is not imminent. The move could suggest the company is waiting for its newer strategy — focused on paring down its bets and growing its enterprise business — to gain traction before going public.
The timing follows a candid acknowledgment from CEO Sam Altman, who wrote last month that the company “did not have our best 12 months ever, which is mostly my fault.” He added that the company is “about to have our best 12 months to date.” The Wall Street Journal also reported in April that OpenAI missed internal financial goals — a factor that could weigh on investor sentiment ahead of any IPO.
Rival Anthropic, which was reportedly profitable earlier this year, is also expected to go public, giving OpenAI additional reason to present strong financial results before any market debut. OpenAI did not respond to a request for comment.
Source: TechCrunch