OpenAI is the highest-valuation private company in tech that grants employee equity. The October 2024 round priced the company at $157B post-money, led by Thrive Capital. With roughly 1.34 billion fully-diluted units outstanding, that's an implied per-unit value of about $117.
But OpenAI doesn't grant traditional options or RSUs. It grants Profit Participation Units (PPUs) — a structure unique to the company. Understanding what you actually own is the first step to valuing it.
How PPUs differ from RSUs and options
Legally, a PPU is a right to share in distributions from OpenAI's for-profit subsidiary. There is no strike price (so no exercise decision), and no shares physically transfer to you. When the entity makes a distribution — either through a tender offer or a liquidity event — your PPU pays out in cash or shares of whatever security exists at that point.
Economically, they behave very much like an RSU: you accrue value as the company grows, you receive proceeds at vesting events or distributions, and you owe ordinary-income tax on what you receive. The main practical difference is that PPU payouts depend on OpenAI's profit pool — they aren't strictly tied to the company's overall enterprise value the way stock would be.
Secondary market signals
OpenAI is unusual for a private company in that secondary trades happen frequently and have settled close to the primary round. Forge and Hiive have shown trade prints between $108 and $117 per share over the last six months — within 5% of the implied primary.
Historically, late-stage private secondaries trade at a 10–25% discount to primary. The tight spread on OpenAI signals strong demand from secondary buyers and limited supply from employees (who are likely waiting for an IPO or larger tender).
What this means for current employees
If you joined OpenAI in the last three years and received PPUs, your most likely path to realising value is a future tender offer, similar to those run by SpaceX and Stripe. The company has run informal liquidity events, and at this valuation, an at-the-money tender would let employees sell partial positions without needing an IPO.
If you're modelling your OpenAI grant, run the calculator with equity type set to PPU and strike price $0. The math is identical to an RSU; the tax treatment at distribution is the only real difference, and it's beyond what a generic calculator can capture.