OpenAI staff are cashing out millions before the IPO because they're 'burnt out' and 'frustrated'

OpenAI is gearing up for what's expected to be a historic IPO launch. But as the company races to prepare the ChatGPT maker for its initial public offering — and works to justify its $852 billion valuation — it's facing a new challenge: a talent exodus.

According to the Financial Times (FT), OpenAI has faced internal reorganizations this year, including executive shuffles and several senior departures.

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Current and former employees the FT spoke with said staff have even been cashing out their pre-IPO shares of OpenAI, with several making more than $10 million. At least two people the FT spoke to said staff were feeling "burnt out" and "frustrated" with the constant reorganizations — and saw the tender sales as a way out.

Executive exits and staff reorganizations

The latest high-profile exit was OpenAI's chief revenue officer Denise Dresser, who was appointed to the role in December. According to two investors who spoke with CNBC, OpenAI's financial backers were surprised by Dresser's announcement, but they reportedly said the chaos is part of the company's fast-moving culture.

Dresser isn't the only executive to part ways with OpenAI. Just four months after she was hired, operating chief Brad Lightcap left his position for a new role.