Connect with us

Published

1 year ago

on

OpenAI has reversed its policies towards secondary share sales, and will now allow current and former employees to participate equally in annual tender offers, CNBC has learned.

The artificial intelligence startup has taken a restrictive approach in the past, with rules allowing the company to determine who gets to participate in stock sales, CNBC reported earlier this month. That led to concern among many shareholders about their ability to get liquidity for some of the millions of dollars worth of equity they own.

In a document shared last week through OpenAI’s equity administration software, the company altered its policy and said that “all sellers (current and former service providers) will have the same sales limit.” Service providers include employees and advisors, OpenAI said in the document, which was viewed by CNBC.

An OpenAI spokesperson didn’t immediately respond to a request for comment.

Tender offers have become a particularly sensitive subject of late due to OpenAI’s skyrocketing valuation, which followed the launch of ChatGPT in late 2022, and a relatively dormant IPO market for well over two years. With no public offering on the horizon and a price tag that makes the company prohibitively expensive for would-be acquirers, secondary stock sales are the only way in the near future for shareholders to pocket a portion of their paper wealth.

Current and former OpenAI employees previously told CNBC that there was growing concern about access to liquidity after reports that the company had the power to claw back vested equity. OpenAI, backed by roughly $13 billion from Microsoft, has been valued at over $80 billion.

Earlier documents indicated that, for former employees, secondary sales typically took place months after transactions for current staffers. And sales limits could differ significantly. In at least two tender offers, the limit for former employees was $2 million, compared to $10 million for current employees.

The change announced last week included the walking back of a provision that some worried could allow the company to forcibly repurchase shares at its “sole and absolute discretion” for the “fair market value.” Previous documents said that “the Company may, at any time and in its sole and absolute discretion, redeem (or cause the sale of) the Company interest of any Assignee for cash equal to the Fair Market Value of such interest.”

OpenAI said in the updated document that it “will not enforce any provision in employee equity documents that forces equity redemption at fair market value, and will revise our documents to reflect the same.”

Former employees who now work at competitors will also no longer be excluded from official tender offers, and will be included in the same category as other former employees, the internal document stated.

The one area where current employees will still be higher in line, OpenAI said, is if a future tender offer is oversubscribed, meaning that stakeholders want to sell more shares than investors have agreed to purchase. In that case, “we will prioritize giving liquidity to current service providers over former service providers,” resulting in a potential “cutback” for those no longer at the company, OpenAI said.

In reversing its tender offer policies, OpenAI has taken a further step to assuage employee fears. Following reports of potential clawbacks, OpenAI recently circulated a document, obtained by CNBC, titled, “Overview and Recap of OpenAI’s Tender Process,” detailing how the company has conducted equity purchases in the past and how it plans to handle them in the future.

Last month, OpenAI announced it would backtrack on a controversial decision to make former employees choose between signing a non-disparagement agreement that would never expire and keeping their vested equity in the company.

However, one notable issue regarding employee equity was not addressed in the latest change. In the past, OpenAI has opened up “donation rounds” to current employees, allowing them to donate a certain amount of their vested equity to charity, which brings with it tax incentives. Former employees could be excluded, as the donation rounds would likely be offered “to active employees only and are not guaranteed to happen,” according to messages viewed by CNBC earlier this month. The new document did not detail whether the policy is still in place.

WATCH: Microsoft gets put on AI backfoot after Apple-OpenAI deal

Related Topics:
Continue Reading

Technology

Amazon had a very big week that could shape where its stagnant stock goes next

Published

1 hour ago

on

December 5, 2025

By

Amazon had a very big week that could shape where its stagnant stock goes next

Continue Reading

Technology

Meta acquiring AI wearable company Limitless

Published

2 hours ago

on

December 5, 2025

By

Meta acquiring AI wearable company Limitless

Meta CEO Mark Zuckerberg wears the Meta Ray-Ban Display glasses, as he delivers a speech presenting the new line of smart glasses, during the Meta Connect event at the company’s headquarters in Menlo Park, California, U.S., Sept. 17, 2025.

Carlos Barria | Reuters

Meta is acquiring artificial intelligence wearable startup Limitless, the companies said Friday.

“We’re excited that Limitless will be joining Meta to help accelerate our work to build AI-enabled wearables,” a Meta spokesperson said in a statement.

Limitless makes a small, AI-powered pendant that can record conversations and generate summaries.

Limitless CEO Dan Siroker revealed the deal on Friday via a corporate blog post but did not disclose the financial terms.

“Meta recently announced a new vision to bring personal superintelligence to everyone and a key part of that vision is building incredible AI-enabled wearables,” Siroker said in the post and an accompanying video. “We share this vision and we’ll be joining Meta to help bring our shared vision to life.”

Read more CNBC tech news

The world of AI wearables has been slowly growing this year, but no company has landed a standout product.

Meta’s Ray-Ban smartglasses, which have been a surprise hit, have a sprinkling of AI flavor with the inclusion of the company’s AI digital assistant.

There are several wearable devices available that are similar to Limitless.

Friend offers a pendant-style device, Plaud comes in a small card shape or pill that can be clipped on or worn around your neck or on your wrist, and Bee, which is worn on a wristband and was scooped up by Amazon in July.

Amazon also runs AI through its Alexa+ line of Echo Speakers, while Google‘s Pixel 10 phones have the Gemini assistant built in.

WATCH: Meta is visibly seeing a return on investment from AI.

Meta is visibly seeing a return on investment from AI, says Rosenblatt Securities’ Barton Crockett

CNBC’s Chris Eudaily contributed to this report.

Continue Reading

Technology

Salesforce shares pop 5%, continuing post-earnings rally and leaving stock poised for best week since 2023

Published

4 hours ago

on

December 5, 2025

By

Salesforce shares pop 5%, continuing post-earnings rally and leaving stock poised for best week since 2023

Sheldon Cooper | Lightrocket | Getty Images

Salesforce shares popped 5% on Friday after the company posted better-than-expected third-quarter earnings on Wednesday despite falling short of Wall Street’s revenue estimates.

The stock, which is up 13% over the past five days, is aiming for its best week since 2023.

The company reported adjusted earnings per share of $3.25, topping Wall Street’s estimates of $2.86 per share. Revenue increased 8.6% year over year to $10.26 billion but just missed analyst projections of $10.27 billion.

Although the artificial intelligence boom has pushed several tech companies into record surges, cloud software firms have seen a rocky year as investors wonder whether AI will render the industry obsolete.

Salesforce is hoping to persuade Wall Street that AI will be able to bolster its products rather than replace them.

Investors “somehow think software companies are under arrest from AI, when the opposite is true,” Salesforce CEO Marc Benioff told CNBC’s Jim Cramer on Thursday.

During the third quarter, the company acquired startups Regrello and Waii, which uses AI to generate code with natural language instructions.

Despite Salesforce’s shares being down 21% year to date, compared with the Nasdaq’s 22% gain, analysts are more optimistic for 2026.

“CRM [Salesforce] continues to be levered to digital transformation, and we expect the company to grow at a solid rate going forward,” Mizuho analysts wrote. “At the same time, we believe CRM will remain fiscally disciplined and that it can continue to drive higher operating and FCF margins.”

Analysts highlighted Salesforce’s AI platform Agentforce, which builds agents that automate business tasks and streamline workflow.

Despite initial investor skepticism over the platform, Cantor analysts were encouraged by its strong adoption in the customer service space.

“We think CRM is starting to formalize and mature the strategy, which should make it easier for customers to understand, and therefore adopt, Agentforce,” the Cantor analysts wrote.

Annual recurring revenue of Agentforce jumped 330% year over year to $540 million.

“Why everyone is so excited about Agentforce is because this is what AI was meant to be,” Benioff said. “It brings together humans and data and AI and apps, and delivers an incredible experience for companies.”

WATCH: Salesforce CEO Marc Benioff goes one-on-one with Jim Cramer

Continue Reading

Trending