SK Hynix “humbled” as OpenAI employees cash out $6.6 billion in stock

Source: Wall Street Journal

Recently, news that SK Hynix employees received an average bonus of 6.1 million RMB per person swept the internet. However, compared to the cash-out by OpenAI employees, this figure might just be “pocket change.”

Last October, OpenAI completed a large-scale employee stock cash-out. According to the Wall Street Journal, over 600 current and former employees cashed out a total of $6.6 billion (approximately 480 billion RMB) in this round. Among them, about 75 individuals reached the cap—$30 million each.

This was the first large-scale payout since OpenAI raised the individual cash-out limit from the previous $10 million to $30 million. Citing sources, the report stated that this adjustment was made “in response to investor demand.”

The timing is also noteworthy: OpenAI requires employees to hold shares for two years before selling them. This means the cash-out was the first real opportunity for many employees who joined after ChatGPT’s launch to convert their paper wealth into hard cash.

100x in 7 Years: The Payoff of a ‘Lottery Ticket’

OpenAI first granted equity to employees 7 years ago. According to reports, the current book value of shares held by these employees has increased more than 100-fold.

For context, the Nasdaq Composite Index rose about 3-fold over the same period.

OpenAI is currently the highest-valued tech startup globally, with its latest funding round valuing the company at $852 billion.

This rate of wealth appreciation is rare even in tech industry history. While hundreds of companies went public during the internet bubble, most employees had to wait a long time after the IPO to cash out, and some ended up with nothing after the bubble burst. This time, OpenAI employees completed a massive payout even before the company went public.

A $30 Million Ceiling, and Some Still Find It ‘Too Low’

The cash-out cap for this round was set at $30 million per person, but for some top researchers and engineers, this figure is still insufficient.

Previously, when the cap was set at $10 million, it had already caused dissatisfaction among some core employees who “could theoretically sell more.”

In terms of compensation, OpenAI’s offers are equally aggressive. According to its website, some technical positions offer annual salaries exceeding $500,000. Last August, reports indicated that OpenAI granted some employees one-time bonuses worth millions of dollars.

Last year, Meta offered compensation packages as high as $300 million to retain top researchers. The talent war across the entire AI industry has driven compensation to heights rarely seen in modern tech history.

Wealth Effect: San Francisco Rents Rise, Some Begin Donating

The $6.6 billion cash-out is more than just a set of numbers.

This wave of wealth is pushing up rents in San Francisco and raising concerns among outsiders about worsening wealth inequality within the city.

Some employees have chosen a different way to handle the money—placing remaining shares into a “donor-advised fund,” a charitable investment account dedicated to philanthropic use that also allows for tax deductions in the current year. Reports indicate that some ordinary employees who did not expect to accumulate such wealth have also joined the donating ranks.

At the executive level, the scale of wealth is even more staggering. OpenAI President Greg Brockman testified in court this week that his equity stake is worth approximately $30 billion. CEO Sam Altman stated he does not hold company shares, citing the non-profit origins of the organization. However, according to reports, some investors anticipate that he will receive equity if he prevails in the legal battle with Musk over OpenAI’s transition.

IPO Hasn’t Arrived Yet, but a Greater Wealth Effect Lies Ahead

This cash-out is just a preview.

OpenAI and Anthropic are preparing for their respective IPOs, which are expected to be among the largest listings in tech history. At that time, thousands of ordinary employees will have the opportunity to sell their shares, and many of them will become multi-millionaires overnight.

The Wall Street Journal described this cash-out as “a preview of the coming flood of wealth into San Francisco and other tech hubs.”

Comparing this to the SK Hynix story: the 6.1 million RMB bonus for SK Hynix employees was based on the semiconductor super-cycle and bets on HBM technology, backed by the cyclical rotation of the entire industry. Meanwhile, the wealth of OpenAI employees stems from the valuation explosion of a single company riding the AI wave—and the door to this company’s public listing has yet to open.

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