Current and former employees of OpenAI have expressed mounting frustration over the company’s long-standing restriction on equity donations to charity. This discontent appears to have prompted a shift within the organization. In a recent memo seen by The Verge, OpenAI’s equity team announced that eligible employees can soon donate their shares, offering a glimmer of hope for those ready to give back.
The stakes are high: for employees who secured six-figure equity packages in 2019, this opportunity could translate into millions donated to charitable causes.
A source familiar with the matter informed The Verge that OpenAI’s implementation of this policy has come around 18 months later than expected. The delay is particularly disconcerting given that charitable equity donations were initially touted by the company as a key incentive for attracting talent, especially in the increasingly competitive AI sector. Meanwhile, OpenAI’s competitor, Anthropic, offers a more generous program, matching equity donations dollar-for-dollar for up to 25% of one’s grant, as noted on their careers page.
However, potential participants face a significant hurdle: the deadline for determining donation amounts is alarmingly swift, leaving little time compared to the minimum SEC-mandated periods for other liquidation decisions, which typically span 20 business days. This expedited timeline means that some employees might struggle to make informed choices. OpenAI’s communication urges participants to consult tax or financial advisors, complicating matters further, especially as many may find their donation options limited due to the abrupt notice and previous holds.
The decision to reopen donation opportunities comes in response to years of employee anxiety surrounding the company’s grip on their equity. As OpenAI’s valuation skyrockets and its structure evolves, many employees have raised concerns about restrictive policies, including fears that vested equity could be reclaimed if they breach non-disparagement agreements. Such worries have been frequently voiced in Slack discussions and all-hands meetings, particularly regarding the inability to donate to charities.
Previous donation rounds took place in 2021 and 2022, but employees have voiced their dissatisfaction over the void since the last event. Following a significant tender offer to SoftBank that allowed employees to sell about $1.5 billion in shares last year, many were led to believe that a charitable donation opportunity would soon follow—only to have those plans indefinitely postponed. But now, following OpenAI’s recent mega-funding round and completion of its controversial for-profit restructuring, the company seems to be easing restrictions.
In late September, OpenAI finally announced the resolution of its restructuring talks, which had involved negotiations with the attorneys general of California and Delaware for over a year. Founded in 2015 as a nonprofit research lab, OpenAI’s future hangs in the balance—particularly concerning whether its nonprofit arm will retain control over the technology it develops, notably the quest for artificial general intelligence (AGI), systems with capabilities on par with or exceeding human cognition.
Moreover, the price of OpenAI shares has surged since last month, with employees recently able to sell their equity for around $430 per unit. Now, each share commands a fair market value of approximately $483, a rise attributed in part to the reduced financial obligations owed to its nonprofit entity. This rapid appreciation reflects not only the company’s growth but also the evolving landscape of corporate philanthropy and employee benefits.
