AI firms are finding it hard to secure talented workers, and OpenAI plans to lure them with the allocation of stocks. A source close to the OpenaAI development told Reuters that the company will also allow them to cash out when required. The talks are still in the initial stage, and a conclusion will come before the IPO launch. However, a tentative timeline for the IPO launch has not been made public and remains under wraps.
ChatGPT maker OpenAI is eyeing a $500 billion valuation and is in early-stage discussions before its IPO goes live. The early-stage discussions include allowing employees to cash out on stock sales. The stock sale is a big bump from its $300 billion valuation as the tech giant sees rapid gains in users. Its revenues are surging despite intense competition in the AI sector to take the top spot.
The talks on the stock sale before the IPO are about allowing both former and current employees of OpenAI to cash out. The shares would be worth billions of dollars and divided among employees based on their rankings and positions. It is not known if the cashing out of stocks will be allocated only to top-level employees or to everyone.
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OpenAI Aims for $500 Billion Valuation, Allows Employees to Cash Out Stocks
OpenAI’s ChatGPT has seen its revenues double in the first seven months of 2025. Its annualized run rate is at $12 billion, and experts predict it is on track to reach $20 billion by the year-end. ChatGPT products boast of 700 million active users every week and saw a surge of 400 million since February. It also raised $40 billion in funding from Japan’s SoftBank Group. If OpenAI allocates stocks to employees and allows them to cash out, they would attract top talent globally. Several other AI firms are paying big packages to attract talent and build their projects.