OpenAI employees are cashing out their shares, dozens making $30 million each
OpenAI’s planned IPO later this year is expected to be one of the largest of all time. Employees who got equity early on are sure to reap a windfall when the company shares hit the public markets.
Often these pre-IPO shares can’t be cashed in until the company goes public, and many startups have longer lockup periods before employees can sell their shares.
But The Wall Street Journal reports that OpenAI has a relatively short two-year vesting period, and the company allowed employees to sell shares before the IPO via a tender offer, as long as they’ve reached the two-year mark.
According to the report, in October, more than 600 current and former OpenAI employees sold shares through this process, minting a cluster of new multimillionaires. The Journal said about 75 of those walked away with $30 million (the maximum sale amount for this offer).
But The Wall Street Journal reports that OpenAI has a relatively short two-year vesting period, and the company allowed employees to sell shares before the IPO via a tender offer, as long as they’ve reached the two-year mark.
According to the report, in October, more than 600 current and former OpenAI employees sold shares through this process, minting a cluster of new multimillionaires. The Journal said about 75 of those walked away with $30 million (the maximum sale amount for this offer).
