OpenAI Completes $7 Billion Share Buyback, Prepares for IPO at $852 Billion Valuation

TradingKey - On August 10, Eastern Time, according to CNBC, OpenAI completed a share buyback totaling approximately $7 billion using its own corporate funds, allowing current and former employees to sell their shares at an $852 billion valuation, which differs from previous rounds funded by external investors.

Secondary market sales have become a regular component of OpenAI's pre-IPO strategy. The company completed a $1.5 billion buyback arrangement in 2024 and completed a $6.6 billion tender offer at a $500 billion valuation last October. Preparations for this $7 billion buyback began following the completion of a record-breaking $122 billion funding round in March this year, serving as a continuation of this strategy.

For the company, this helps alleviate liquidity pressure on employee shareholdings. OpenAI confidentially filed for an IPO with the U.S. Securities and Exchange Commission in June, but has not yet announced an official listing timeline.

Analysts point out that implementing buybacks with self-owned funds rather than external financing helps streamline the shareholder registry and reduce the complexity of the equity structure before going public, while avoiding prices set by external investors from serving as a reference for subsequent IPO pricing, thereby retaining greater flexibility during the official bookbuilding process.

Since launching ChatGPT in 2022, OpenAI has risen rapidly to become one of the fastest-growing private companies in the world. However, the as-yet-unprofitable company still faces significant financial pressure. According to public disclosures, it is projected to lose approximately $14 billion in 2026 and is not expected to achieve positive cash flow until between 2029 and 2030.

Against the backdrop of AI giants such as OpenAI and Anthropic lining up to go public, whether high valuations in the private market can be recognized by the public market will be a key test for this wave of the AI investment boom.