OpenAI Uses Cash for $7 Billion Employee Share Buyback Ahead of IPO

OpenAI bought back approximately 7 billion dollars in employee shares using its own cash, maintaining a valuation of 852 billion dollars ahead of a potential IPO. The tender offer allows the company to repurchase existing shares from employees without involving outside investors. Previously, OpenAI conducted investor-funded tender offers, including one in 2023 that raised its valuation to 86 billion dollars. The largest prior deal occurred in October 2025 when Thrive Capital and SoftBank purchased 6.6 billion dollars in employee shares, valuing OpenAI at nearly 500 billion dollars. A funding round in March 2026 increased the valuation to 852 billion dollars, a figure confirmed by OpenAI following a confidential IPO filing. This buyback keeps OpenAI's cap table free of new outside investors before a potential listing and indicates sufficient cash reserves after the March funding. In contrast, Anthropic's recent tender was linked to a 30 billion dollar funding round but reportedly fell short as employees retained shares. OpenAI's earlier tenders saw heavy employee selling, leaving investor demand unmet. CEO Sam Altman indicated in June that OpenAI aims to go public within the next year, although some reports suggest a possible delay until 2027. The buyback allows OpenAI to maintain flexibility in its timeline without the pressure of new investors.

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