According to The Verge, OpenAI is finally allowing current and former employees to donate their equity to charity after years of restrictions that left workers frustrated. The company sent an email from its equity team stating that eligible shareholders can participate, though the decision comes about 18 months later than promised. Employees who received six-figure equity deals back in 2019 could potentially donate millions to charity given the company’s soaring valuation – shares that were worth about $430 each last month now have a fair market value of approximately $483. The catch is a surprisingly short deadline that gives participants significantly less time than the SEC-mandated minimum of 20 business days for other liquidation decisions. This quick turnaround means some people are finding it difficult to participate, especially since OpenAI’s email strongly recommends working with tax or financial advisors.
The long wait
Here’s the thing – this isn’t just some random policy change. Employees have been pushing for this for years, watching their equity grow while being unable to donate it to causes they care about. The company had previously used charitable donation opportunities as a recruiting tool, especially during the heated AI talent wars. But then they just… stopped. Past donation rounds happened in 2021 and 2022, but then nothing. Last year, after employees sold about $1.5 billion in shares to SoftBank, they were told a charitable donation opportunity would come “soon after.” Instead, it was put on hold indefinitely. So why now?
Why the sudden change?
The timing here is pretty interesting. OpenAI just completed its massive funding round and finished restructuring from a nonprofit to a for-profit entity. They’ve been negotiating this shift with attorneys general from California and Delaware for over a year. And suddenly, now that the paperwork is done, they’re loosening restrictions? It feels like they’re cleaning house after the fact rather than being transparent from the start. Plus, that short deadline – it’s almost like they want to limit participation rather than encourage it. If you’re going to finally deliver on a promise you made 18 months ago, why make it so difficult for people to actually take advantage?
Bigger picture concerns
This isn’t happening in isolation. Employees have been increasingly vocal in Slack threads and all-hands meetings about OpenAI’s restrictive approach to equity. Remember those concerns about the company clawing back vested equity if employees violated non-disparagement agreements? That raised major red flags. And when you compare OpenAI to competitors like Anthropic – which offers optional equity donation matching at a 1:1 ratio for up to 25% of equity grants – it makes you wonder about OpenAI’s priorities. Are they genuinely trying to do right by employees, or just checking a box now that the big structural changes are done?
Looking ahead
So where does this leave OpenAI’s relationship with its workforce? The company started as a nonprofit research lab in 2015, and that original mission still matters to many employees. The fact that they can now donate equity might help rebuild some trust, but the way this was handled leaves a bad taste. The short deadline, the years of delay, the timing right after major corporate changes – it all feels calculated rather than compassionate. And with the SEC’s regulations around equity transactions being what they are, you have to wonder if OpenAI is pushing the boundaries of what’s acceptable here. Basically, this feels like too little, too late – and done in a way that benefits the company more than the employees or charities they’re supposedly trying to help.
