SoftBank Secures Bigger OpenAI Stake With $1.5B Employee Share Buyout: Report

Kaustubh Bagalkote

November 27, 2024

OpenAI enables employees to sell up to $1.5 billion worth of shares in a tender offer led by SoftBank Group (OTC:SFTBY) (OTC:SFTBF).

What Happened: The transaction, set to close by Dec 24, allows SoftBank to deepen its stake in the AI leader while offering liquidity to current and former employees, reported CNBC, citing people familiar with the matter.

The deal, priced at $210 per share, aligns with OpenAI’s recent $157 billion valuation. SoftBank CEO Masayoshi Son drove the move, following a $500 million investment in OpenAI's last funding round. This marks another step in Son's aggressive AI strategy, with SoftBank's Vision Fund 2 also backing startups like Glean and Perplexity.

OpenAI, backed by $13 billion in funding from investors including Microsoft Corp (NASDAQ:MSFT) and NVIDIA Corp (NASDAQ:NVDA), has emphasized the importance of such tender offers amid a dormant IPO market.

This initiative reflects the company’s commitment to employee satisfaction and continued capital-raising to sustain its growth in the competitive generative AI market.

SoftBank and OpenAI did not immediately respond to Benzinga's request for comment.

Read Next:

BlackRock Set To Acquire Private Credit Manager HPS For $12B: Report

Image Via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Recommended

Legendary Investor: Buy These "Trump Stocks" Now - Ad

"One Stock Gold Blueprint" REVEALED - Ad

This Coin Could Surge Like Bitcoin Did Back in 2013... - Ad

Automaker Stellantis plans to reopen an assembly plant in Illinois and build the next generation Dodge Durango in Detroit, the automaker said Wednesday.

Donald, Melania Trump Meme Coins Are A Personal Brand Play, Says Anthony Pompliano

Anthony Pompliano, founder and CEO of Professional Capital Management, discussed the rise of branded “meme coins” like those tied to Donald and Melania Trump.

NJ iGaming Hits $2.4b--What's Next?

NJ iGaming Hits $2.4b--What's Next? - Ad

New Jersey's $2.4B iGaming milestone highlights an exploding market. One company, focused on VIP players, delivers $2.13 revenue per $1 spent, 20% retention rates, and 60% growth. With a tight share float and LatAm expansion, this stock is a rare gem.

Chipmakers Rally On AI Stargate Bet, Netflix Soars, Bitcoin Falters As Trump Keeps Quiet On Crypto: What's Driving Markets Wednesday?

Tech stocks enjoyed a surge Wednesday, driven by a sharp rise in semiconductor shares after President Donald Trump, OpenAI's Sam Altman, Oracle Corp.

Carnival Corp's Private Island Strategy Poised For Significant Expansion, Says Analyst

Analyst Lizzie Dove from Goldman Sachs maintained a $35 target for Carnival Corp, citing the company's expanding private island strategy, focus on optimizing sales from existing ships, alongside a slower pace of newbuilds.

TICKER: REDACTED -- Buy Now!

TICKER: REDACTED -- Buy Now! - Ad

This one stock has been responsible for gains of 85% in 14 days, 176% in 5 weeks, 41% in two weeks, 120% in 3 months, 138% in 8 days, 186% in 8 days, 222% in 8 days, and many more... Now, millionaire trader Jeff Clark is revealing his strategy for trading this stock PLUS the full name and ticker symbol for FREE.

Donald Trump And JD Vance's Official Portraits: Mugshot Meme Vs Smiling Boy Scout?

President-elect Donald Trump and his incoming VP JD Vance debuted their new presidential and vice presidential portraits last week and, well, they could not have been more different.

Panama, familiar with US intervention, bristles at Trump's comments on canal

PANAMA CITY (AP) — U.S. President Donald Trump’s insistence Monday that he wants to have the Panama Canal back under U.S. control fed nationalist sentiment and worry in Panama, home to the critical trade route and a country familiar with U.S. military intervention.

Say Goodbye to Trading Losses

Say Goodbye to Trading Losses - Ad

Tired of losing? Pivozon MM4 EA is the solution! It's optimized for XAUUSD H1 timeframe, on high level ticks data from DukasCopy since 2016 till present. The main core is fixed SL/TP, low DrawDown under 37% and impressive WinRate above 60%. Pivozon avoids dangerous methods like Hedge, Grid, Scalping or Arbitrage. Enjoy over 100% yearly returns, and advanced equity and spread protections.

Do US adults support Trump's agenda? Here's what an AP-NORC poll shows

WASHINGTON (AP) — will start implementing a far-reaching agenda when he takes office for the second time on Monday, but a poll finds that despite of an “unprecedented and powerful mandate,” the incoming Republican president lacks broad support for some of his top priorities.

Governor proposes banning cellphones in schools throughout New York state starting next fall

ALBANY, N.Y. (AP) — Students throughout New York state might have to give up their starting next fall under a proposal announced Tuesday by Gov. Kathy Hochul.

The Stock Driving iGaming's Success

The Stock Driving iGaming's Success - Ad

iGaming is thriving, with NJ hitting $2.4B in revenue. One company leads the pack with 20% retention rates, 60% growth, and expansion into new markets. Tight insider ownership make this stock a standout.

Volkswagen 'Concerned' Over Trump Tariffs: Will Automakers Pass Costs To US Consumers?

Volkswagen called tariffs "harmful" and detrimental to American consumers, Reuters reported. The company runs one plant in Puebla, Mexico.

Can he do that? Lawyers and lawmakers debate if Trump has authority to suspend the US TikTok ban

On the eve of his inauguration, President Donald Trump said an executive order suspending would be among his . The social media platform and app's ardent users waited Monday evening to learn if he would follow through and if so, what the order might say.

Elon Musk's Critical Metals Warning: What Investors Need to Know

Elon Musk's Critical Metals Warning: What Investors Need to Know - Ad

Elon Musk has repeatedly warned about the looming critical metals crisis, calling materials like nickel, copper, and PGMs essential to Tesla's future. One Canadian discovery in Quebec is drawing comparisons to Russia's Norilsk Mine and has the potential to reshape global supply chains. With heavyweight backers and a fully funded exploration plan, this opportunity demands attention.

Musk's straight-arm gesture embraced by right-wing extremists regardless of what he meant

NEW YORK (AP) — Right-wing extremists are celebrating Elon Musk’s straight-arm gesture during a speech Monday, although his intention wasn't totally clear and some hate watchdogs are saying not to read too much into it.

Trump's Armored Presidential Limo: Inside The $1.5 Million Beast Packed With Cutting-Edge Features

Donald Trump will receive the Presidential state car, a custom Cadillac nicknamed "The Beast".

The No. 1 Stock for Trump's Second Term?

The No. 1 Stock for Trump's Second Term? - Ad

Legendary investor Louis Navellier's stock rating system gave a buy rating to ALL of the top 30 performing stocks in the S&P 500 index of Trump's first term... ALL of them! His system is now rating these stocks as a "BUY" for Trump's second term.

PNC Financial Positioned For Strong Loan Expansion And Yield Curve Benefits, Analyst Predicts Net Interest Income Growth Through 2026

PNC Financial's Q4 revenue exceeds expectations, with analysts forecasting net interest income growth through 2026 driven by loan expansion and yield curve benefits.

Trump Once Said Taiwan Took '100% Of Our Chip Business,' But TSMC Confident Of Support For Arizona Plants Under Incoming President

Taiwan Semiconductor Manufacturing Co. expects continued U.S. government support for its Arizona chip plants under President-elect Donald Trump's administration, despite his previous criticism of Taiwan's semiconductor industry.

Get Your Retirement Plan in Shape in 2025

Get Your Retirement Plan in Shape in 2025 - Ad

The clock is ticking -- make the most of Q1 to set up a retirement plan that works for you. Datalign Advisory can help you get everything in order before tax time.

Elon Musk's DOGE Co-Lead Vivek Ramaswamy Expected To Exit Trump Admin Task Force Amid Ohio Governorship Bid

Vivek Ramaswamy, co-leader of President-elect Donald Trump's Department of Government Efficiency, is expected to step down from his position, potentially complicating the administration's ambitious federal spending reduction goals.

Prince Harry's lawsuit against The Sun is part of a long saga of alleged tabloid misbehavior

LONDON (AP) — trial against the publisher of The Sun, which opens Tuesday, follows over the cutthroat practices of the British press in the days when newspapers sold millions of copies and shaped the popular conversation.

Is This Defi Coin Your Next "10-Bagger" Investment?

Is This Defi Coin Your Next "10-Bagger" Investment? - Ad

Our #1 pick in decentralized finance is largely overlooked by mainstream investors (for now). This governance token could skyrocket as DeFi adoption surges with the smart money and institutions.

Dozens of firms pull ads from Japanese network over sex scandal linked to its staff and celebrity

TOKYO (AP) — Dozens of major Japanese companies have pulled their commercials on Fuji Television amid allegations company officials tried to cover up a sex scandal involving one of the country’s most famous TV hosts.

Marco Rubio Becomes First Trump Cabinet Pick To Be Confirmed As Secretary Of State

Marco Rubio has been confirmed as the first Latino U.S. Secretary of State, gaining bipartisan support on the day of Trump's inauguration.

FORGET Crypto, FORGET Stocks... Do THIS Instead...

FORGET Crypto, FORGET Stocks... Do THIS Instead... - Ad

With everyone scrambling for the next hot AI stock or cryptocurrency... One man is saying FORGET them all. Because his strategy could lead to bigger gains than you'd see from stocks, crypto or anything else you might be seeing. It's shown his readers gains of 85% in 14 days... 55% gains in 2 days... And even 222% in 8 days!

US rejects Venezuelan President Maduro's reelection, but keeps financial lifeline for his government

CARACAS, Venezuela (AP) — Things seemed to be looking up for Venezuela in 2022. Following years of authoritarian rule and withering economic sanctions, had agreed to work toward a democratic presidential election. The White House, in return, granted him a : a permit for U.S. energy giant to pump and export Venezuelan oil.

FACT FOCUS: A look at false and misleading claims Trump made during his inaugural address

In his first address after being on Monday, President Donald Trump repeated several false and misleading statements that he made during his campaign. They included claims about immigration, the economy, electric vehicles and the Panama Canal. Here’s a look at the facts.

Unlocking a Polymetallic Discovery Like No Other

Unlocking a Polymetallic Discovery Like No Other - Ad

With drill results rivaling the best in the world and a fully funded 2025 program, this polymetallic stock is poised for major growth. Industry icons Robert Friedland and Rob McEwen are already in. Will you be next?

Sonos' Interim CEO Hits The Right Notes In Employee Letter, Here's The Key Takeaway

In the wake of a contentious app update, Sonos Inc CEO Patrick Spence stepped down from his role last week.

IonQ, H&E Equipment Services And ImmunityBio Are Among Top Mid Cap Gainers Last Week (Jan 13-Jan 17): Are The Others In Your Portfolio?

Explore this week's top-performing mid-cap stocks, including H&E Equipment Services' impressive 100.59% surge following an acquisition announcement by United Rentals. Discover why stocks like SEMrush and Blueprint Medicines also experienced significant gains, impacting investment portfolios positively.

Crypto Stocks Surge Amid Market Boom

Crypto Stocks Surge Amid Market Boom - Ad

Crypto stocks are on fire as Bitcoin hits all-time highs. One under-the-radar company is leading the charge, managing $2.1 billion in client assets and seeing record trading volumes. With crypto adoption skyrocketing, this could be a game-changing opportunity.

Jeff Bezos-Backed Perplexity Reportedly Makes $50 Billion Move To Merge With TikTok, But Elon Musk's X Remains This Analyst's Favorite Bidder

Jeff Bezos-backed Perplexity AI has reportedly submitted a $50 billion bid to merge with TikTok U.S., aiming to create a new entity with ByteDance's investors retaining stakes while boosting Perplexity's video capabilities.

Tesla's Vietnamese Rival VinFast Enters 'Next Growth Frontier' India Amid Global Expansion Push, Plans $500 Million Investment

Vietnamese electric vehicle manufacturer VinFast Auto is entering India's growing EV market with two premium SUVs, following strong third-quarter 2024 delivery growth and significant financial backing from its founder.

iGaming's Next Big Stock Winner

iGaming's Next Big Stock Winner - Ad

The $210B iGaming market is growing fast, with NJ leading the way. This stock, with 60% revenue growth and a 20% retention rate, is perfectly positioned for explosive gains.

Under the Radar: Maximize Returns with Time-Tested Investment Formulas

Two European quants, one working for Robeco and the other for Allianz, published a paper asking (and answering) whether formulaic investing is possible.

Trump Meme Coin Plummets 30% But Traders Say It's Just A Correction

The meme coins of President Donald Trump and First Lady Melania Trump, have taken a sharp downturn after reaching record valuations on their launch day.

Stunning Trump Exec Order Leaked

Stunning Trump Exec Order Leaked - Ad

This secret document contains stunning details about Donald Trump's big Day 1 announcement... His allies are calling it Trump's Secret Manhattan Project. Because if what's in this leaked document is even half true (and trust me, it comes from a very, very credible source)... It will be the boldest, most mind-blowing and daring American initiative ANY U.S. President has launched in over 80 years. And over the next 100 days, it could set off a huge dose of "Trump Market Euphoria"... igniting a buying frenzy in very specific AI stocks... unlike anything we've seen so far.

Nvidia, Apple-Supplier TSMC Halts Production As 6.4 Magnitude Earthquake Strikes Taiwan

A 6.4 magnitude earthquake struck southern Taiwan early Tuesday, forcing Taiwan Semiconductor Manufacturing Co. to evacuate facilities in a region critical to global chip supply, marking the second significant seismic event to impact semiconductor operations in recent months.

Trending Now