Following the return of Sam Altman, OpenAI's tender round is back on track with an extension of the closing date to January 5th, as per sources. Altman's departure had previously put the offer in danger. It is estimated that the company is worth $86 billion, and employees now have until the 5th of January to make the decision to take part.
OpenAI's tender offer, which would enable employees to sell shares in the start-up to outside investors, is still on track in spite of the leadership issues and board shakeup, according to two people familiar with the issue who spoke to CNBC anonymously.The tender offer, led by Josh Kushner's Thrive Capital, is planned to value OpenAI at the same levels as reported in October, around $86 billion. The round and valuation were in danger when Sam Altman was temporarily removed earlier in November, but his comeback reinstated the tender offer.Tender offers don't involve the issuance of new equity. Instead, Thrive and other investors taking part will buy current units owned by staff members, allowing them liquidity. The $86 billion round is three times bigger than OpenAI's preceding fundraise in April, which valued the company at approximately $28 billion.Another source told CNBC that the round had been extended to January 5.This follows the highs and lows of the last couple of weeks for the organization. OpenAI's non-profit board argued that Altman "wasn't consistently honest in his communications with the board" as CEO, and his subsequent departure sparked outrage from investors and employees, particularly when Microsoft CEO Satya Nadella said Altman and OpenAI president Greg Brockman would be leading a fresh AI lab under Microsoft. Staff threatened to walk out in a mass, signing an open letter and commenting in support of Altman on social media, which partially triggered a substantial alteration of OpenAI's board. On Wednesday, OpenAI declared Altman and Brockman's official return to their prior roles, along with a new board, including former Salesforce co-CEO Bret Taylor, ex-Treasury Secretary Larry Summers and Quora CEO Adam D'Angelo.Microsoft obtained a non-voting board observer position, according to OpenAI on Wednesday. Nadella had previously told CNBC that fresh governance would be needed at the start-up. Microsoft holds a 49% stake in OpenAI.Not every major supporter will get a director position. Tiger Global is unlikely to go after a board seat, in line with the firm's long-standing practice, according to a source familiar with the matter. Other major backers include Founders Fund, Sequoia Capital and, after the completion of the tender offer, Thrive Capital.The Information and Bloomberg had earlier reported certain details of the tender offer.Sequoia Capital did not comment on whether it would be involved in the upcoming tender. In addition, Founders Fund won't participate in the tender offer, a source familiar with the firm said. A representative for Thrive only stated that they remained "devoted" to OpenAI.OpenAI didn't answer CNBC's request for comment right away. — CNBC's Ari Levy & Jordan Novet contributed to this report.WATCH: Elon Musk says OpenAI is lying about using copyrighted data
OpenAI's offer to allow employees to sell their shares to outside investors is still intact, two people familiar with the situation told CNBC. The tender offer, led by Josh Kushner's Thrive Capital, is expected to value the start-up at an already reported $86 billion, as reported in October. Sam Altman's departure had put the round and reported valuation in jeopardy, but his return enabled the tender offer to move forward.Tender offers do not involve issuing new equity, but rather buying existing units from employees, essentially providing them with liquidity. The $86 billion round is three times the size of OpenAI's previous fundraising in April, which valued the company at around $28 billion.Another person familiar told CNBC that the round had been pushed back to January 5. This follows a turbulent couple of weeks for the company. After OpenAI's non-profit board accused Altman of "not consistently being candid in his communications with the board" as CEO, and his subsequent exit caused an uproar among investors and employees alike, prompting Microsoft CEO Satya Nadella to say that Altman and OpenAI president Greg Brockman would lead a new AI lab under Microsoft. Employees threatened to walk out in solidarity, signing an open letter and expressing their support for Altman on social media, resulting in a significant rearrangement of the OpenAI board. On Wednesday, OpenAI announced that Altman and Brockman were returning to their previous roles, along with a new board, including former Salesforce co-CEO Bret Taylor, ex-Treasury Secretary Larry Summers and Quora CEO Adam D'Angelo.Microsoft obtained a non-voting board observer position, OpenAI stated Wednesday. Nadella had earlier told CNBC that new governance would be needed at the startup. Microsoft holds a 49% stake in OpenAI.Not all of the major backers will achieve a director position. Tiger Global is unlikely to pursue a board seat, according to a person familiar with the matter, in line with the firm's long-standing practice. OpenAI's other major backers include Founders Fund, Sequoia Capital and, after the end of the tender offer, Thrive Capital.The Information and Bloomberg had already reported some details of the tender offer.Sequoia Capital declined to comment on whether it would be involved in the upcoming tender. Founders Fund will not participate in the tender offer either, a source familiar with the firm said. A spokesperson for Thrive declined to comment beyond saying it remained "committed" to OpenAI.OpenAI did not immediately respond to CNBC's request for comment. — CNBC's Ari Levy & Jordan Novet contributed to this report.WATCH: Elon Musk says OpenAI is lying about using copyrighted data
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