OpenAI Employees Cash In Millions

FINANCE
OpenAI Employees Cash In Millions

Hundreds of OpenAI’s current and former employees are poised to cash in on a lucrative payday, with the company facilitating a private stock sale to SoftBank Group. Around 400 eligible employees can sell their shares at $210 per share, potentially earning up to $10 million each. This tender offer follows OpenAI’s skyrocketing valuation, which doubled over the past year to $157 billion.

SoftBank plans to purchase $1.6 billion worth of stock, giving insiders a chance to monetize their equity while enhancing SoftBank’s stake in OpenAI. Eligible shareholders must have received their restricted stock units over two years ago and have until December 24 to decide how much they want to sell. Current employees will be prioritized, with guaranteed full payouts of up to $10 million, while former employees will have at least $2 million in sales assured.

OpenAI, which has over 2,000 employees, has eased tender offer rules to allow broader participation, addressing past criticisms of excluding former staff or penalizing those working for competitors. The offer also aligns with SoftBank’s broader AI investment strategy, following its $500 million contribution to OpenAI’s $6.6 billion October fundraising round.

Notably, ex-OpenAI employees now at Anthropic, including CEO Dario Amodei, could also participate, adding intrigue to the deal.

FINANCE
Nissan and Honda Explore Merger

Nissan and Honda are in early discussions about a potential merger to strengthen their position in the global auto market and compete more effectively with Toyota, the world’s largest automaker. According to insiders, options under consideration include a capital tie-up, a holding company, or a full merger.

The combined entity could also include Mitsubishi Motors, already tied to Nissan, consolidating Japan’s auto industry into two major groups: Toyota and a Honda-Nissan-Mitsubishi alliance. Together, these three sold 4 million vehicles in the first half of 2023, still trailing Toyota’s 5.2 million sales.

The move follows recent Honda-Nissan collaborations on electric vehicle batteries and software and comes as both companies navigate financial and technological challenges. Analysts suggest the merger could help Nissan address financial struggles and bolster resources for EV development.

While the talks are preliminary and may not result in an agreement, the potential deal could redefine competition within Japan’s automotive sector and on the global stage.

POLITICS
Trump Demands Answers on NJ Drones

Reports of mysterious drones flying over New Jersey and other eastern U.S. states have sparked widespread speculation and concern. President-elect Donald Trump called for immediate transparency, declaring, “Let the public know, and now. Otherwise, shoot them down!” on Truth Social.

New Jersey Governor Phil Murphy and U.S. Senator Andy Kim have joined the investigation, while federal agencies, including the FBI and Homeland Security, are assessing the situation. Officials say sightings include legal drones, aircraft, and even stars mistaken for drones, though they continue to evaluate credible tips.

Drone activity has been reported near sensitive locations, including the Picatinny Arsenal and Trump’s Bedminster golf course. While no threats to public safety have been identified, anxiety persists, with some lawmakers urging stricter drone regulations.

Drone operators have been arrested in Boston for flying dangerously near Logan Airport, and Ohio’s Wright-Patterson Air Force Base temporarily closed its airspace after drone sightings. Federal and state officials emphasize the need for robust action to address public concerns and prevent unauthorized drone activity.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.