OpenAI (aka the creators of that helpful little AI tool so many of us love ) just made headlines by expanding its secondary share sale to $10.3 billion. For many employees and early shareholders, this means the chance to sell stock and finally unlock real liquidity from years of hard work.
If you’re at OpenAI you may already be asking:
Should I sell? How much? What does this mean for my long-term finances?
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What This Sale Means for You
A secondary sale gives eligible OpenAI employees and early investors the opportunity to sell private shares to outside investors — before the company goes public. For many, it’s the first chance to turn a paper grant into tangible cash—did I hear someone say liquidity?
This move may also ease the building pressure the company feels from hungry investors who are ready to feast on their eagerly awaited IPO. Because the company is not publicly traded, it can offer a special form of compensation called Profit Participation Units (PPUs) to employees as an alternative to equity in the company.
Not everyone qualifies, but according to the anonymous person who broke the news, the offer is being presented to staff or former staff who’ve held company shares for at least two years to vest significant amounts of their shares. We know this sounds a bit dramatic, but it’s still worth saying, this may be one of the most important financial decisions you’ll ever make.
The Big Decisions (and Risks) Ahead
While this sale is exciting, it comes with complexity:
- Taxes: PPUs are taxed similarly to RSUs, but there are plenty of differences, one being that they are only taxed once the units are sold. They are not considered ordinary income and are treated as capital gains, or even AMT exposure.
- Concentration Risk: Many OpenAI employees have most of their net worth tied to the company. Selling shares can help reduce that risk.
- Market Timing: This is a rare liquidity event. The choice to sell—or not—may have a lasting impact.
- Life Goals: For some, selling shares is about funding big milestones—buying a home, retirement, supporting family, or even philanthropy.
Why Planning Matters for OpenAI Employees
This isn’t just about selling stock—it’s about aligning your wealth with your future. At Schmidt Financial, we work with technology professionals facing these exact situations. For OpenAI employees, that means:
- Modeling different “sell vs. hold” scenarios to see how choices today impact long-term wealth.
- Designing a tax-efficient liquidation plan so you keep more of what you’ve earned.
- Helping you diversify without losing sight of your conviction in OpenAI’s mission and growth.
- Aligning liquidity with what matters most to you—whether that’s financial security, family, or giving back.
If you’re participating in OpenAI’s stock sale, you don’t have to make the decision alone, leaving crucial questions unanswered. Schmidt Financial is ready to discuss your options, finding the best choice for you that helps to work towards the outcome you want today for the future you hope for tomorrow. With our support, you can seize this opportunity, navigate the taxes, and stay focused on your goals—so this milestone works for you now and in the future.
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