OpenAI repurchases around $7 billion in employee shares, with the transaction valuing the company at $852 billion.

According to a Bloomberg report, people familiar with the matter revealed that OpenAI has completed an employee stock repurchase deal, helping current and former staff sell approximately $70 billion worth of the company’s shares as it prepares for a potential initial public offering (IPO). Two sources familiar with the matter said the tender offer sees OpenAI itself repurchase employee shares, rather than bringing in external investors to buy them as was the case in previous transactions. The deal values OpenAI at $852 billion, matching the valuation from the company’s latest funding round. OpenAI declined to comment. In the past, OpenAI has offered employees opportunities to sell shares via investors including Thrive Capital and SoftBank Group. In March this year, the company raised $122 billion from major tech firms and venture capital institutions, and in June it announced it had confidentially filed documents related to its IPO. Meanwhile, OpenAI has been in fierce competition with Anthropic throughout this year. Bloomberg noted that Anthropic has recently gained strong momentum in the AI software sector, with a valuation higher than OpenAI’s, and may go public earlier than its rival.