Open AI share sale will continue.

An employee stock sale led by Thrive Capital that values AI startup OpenAI at $86 billion is expected to close in December after CEO Sam Altman was reinstated following a brief firing.

What's going on here?

OpenAI's business has grown exponentially since launching ChatGPT in late 2022, leading investors to commit up to $1 billion to buy shares from employees and other shareholders in a tender offer valuing the company at over 3 times its last valuation just 8 months ago.

What does this mean?

The tender offer allows employees to sell some of their shares and realize big gains while giving new and existing investors a rare chance to get equity in the fast-growing startup. Thrive Capital is leading the tender and plans to invest hundreds of millions of dollars.

Ashton Kutcher's VC firm Sound Ventures also plans to participate after initially committing $100 million. The deal nearly fell apart when Altman was suddenly fired as CEO last week, but several major investors pushed for his reinstatement to avoid OpenAI imploding and their shares becoming worthless.

Why should I care?

There’s growing investor concern about OpenAI's unusual nonprofit/for-profit structure and lack of governance oversight. While Altman's return allowed the tender offer to get back on track, investors still have many unanswered questions about OpenAI's direction and accountability.

The tensions exposed in the past week mean more drama likely lies ahead as investors seek more control and transparency even as OpenAI asserts its independence.