3 ms·

Anyone have any idea what order of magnitude this windfall is for the employees? We talking hundreds of thousands? Millions? Depending on when you got hired, th

Anyone have any idea what order of magnitude this windfall is for the employees? We talking hundreds of thousands? Millions? Depending on when you got hired, this has gotta be one of the largest $increase/time to exercise options in history, no?

karmasimida 3y ago
Don't they have a 10x value cap or something? I asked chatgpt to research this on the web > The PPUs function similarly to Profit Interest Units (PIUs), granting employees a share in the company's profits rather than traditional equity. These units vest over four years, providing a long-term incentive for employees to contribute to OpenAI's success. A distinctive feature of OpenAI's PPUs is the growth cap; specifically, the PPUs are capped at a 10x growth of their original value. This means if an employee is given PPUs valued at $2 million, the maximum they can sell them for would be $20 million, ensuring that the rewards are substantial yet aligned with OpenAI's broader mission of equitable benefit . This valuation isn't exactly crazy if you ask me. OpenAI is valued at 30B about an year ago. Now 3x. If you bought nvidia stock last year this time, it also gets 3x.
- whimsicalism 3y ago
  If you are an L4 (basically starting at OAI), the median PPU package is $315k [0] and that's valued from the last tender offer round. So that means an exit of ~$945k. [0]: https://www.levels.fyi/companies/openai/salaries/software-engineer?country=254 https://www.levels.fyi/companies/openai/salaries/software-en...
  - almost_usual 3y ago
    Good payout but ~40% going to taxes. A nice down payment for a house in the Bay Area.
  - jasonjmcghee 3y ago
    That's assuming employees are allowed to sell 100% of shares. Often tender offers have a cap - e.g. 10%. Not saying that's the case here, just mentioning it might be much less than you think. That being said, it's hard for me to believe many employees don't have 10x the amount you mentioned, and will be able to get ~1m worth for 10% of their shares. I could be 100% wrong on both fronts - but it's my 2 cents
    - whimsicalism 3y ago
      I just learned that there is 2 year lock-in, but otherwise I think it is unrestricted.
whimsicalism 3y ago
Low millions

karmasimida 3y ago

Don't they have a 10x value cap or something? I asked chatgpt to research this on the web > The PPUs function similarly to Profit Interest Units (PIUs), granting employees a share in the company's profits rather than traditional equity. These units vest over four years, providing a long-term incentive for employees to contribute to OpenAI's success. A distinctive feature of OpenAI's PPUs is the growth cap; specifically, the PPUs are capped at a 10x growth of their original value. This means if an employee is given PPUs valued at $2 million, the maximum they can sell them for would be $20 million, ensuring that the rewards are substantial yet aligned with OpenAI's broader mission of equitable benefit . This valuation isn't exactly crazy if you ask me. OpenAI is valued at 30B about an year ago. Now 3x. If you bought nvidia stock last year this time, it also gets 3x.

whimsicalism 3y ago
If you are an L4 (basically starting at OAI), the median PPU package is $315k [0] and that's valued from the last tender offer round. So that means an exit of ~$945k. [0]: https://www.levels.fyi/companies/openai/salaries/software-engineer?country=254 https://www.levels.fyi/companies/openai/salaries/software-en...
- almost_usual 3y ago
  Good payout but ~40% going to taxes. A nice down payment for a house in the Bay Area.
- jasonjmcghee 3y ago
  That's assuming employees are allowed to sell 100% of shares. Often tender offers have a cap - e.g. 10%. Not saying that's the case here, just mentioning it might be much less than you think. That being said, it's hard for me to believe many employees don't have 10x the amount you mentioned, and will be able to get ~1m worth for 10% of their shares. I could be 100% wrong on both fronts - but it's my 2 cents
  - whimsicalism 3y ago
    I just learned that there is 2 year lock-in, but otherwise I think it is unrestricted.

whimsicalism 3y ago

Low millions