OpenAI completes $7 billion employee share buyback

OpenAI has repurchased $7 billion worth of shares from its employees as part of a tender offer to provide liquidity, according to Bloomberg. This deal values the company at $852 billion, the same as its March fundraising round. The company had confidentially filed with the SEC in June to prepare for a potential IPO, but the tender offer indicates that an IPO might not be imminent. Private tenders allow employees to cash out their stock without the complexities of a public offering. OpenAI did not respond to requests for comment. CEO Sam Altman acknowledged that the past 12 months were not the best, but expects better performance ahead. The Wall Street Journal reported that the company missed internal financial goals. The potential IPO could be delayed as OpenAI focuses on its enterprise business, while rival Anthropic was reportedly profitable earlier this year.