AI boom drives up stock prices, triggering wave of executive sell-offs in US stocks
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AI boom drives up stock prices, triggering wave of executive sell-offs in US stocks
Has the AI cash-out wave begun?
Navigating Web3 tides with focused insightsBy Long Yue
Is the AI cash-out wave beginning?
The artificial intelligence boom is not only reshaping market landscapes but also generating massive wealth for corporate insiders, who are now converting their paper gains into real money.
On October 12, data from Washington Service, which tracks such transactions, showed that insiders at CoreWeave, an AI computing company at the center of this trend, rapidly sold over $1 billion worth of shares after the IPO lock-up period ended in mid-August.
This marks the first opportunity for insiders to cash out significantly since the company went public in March and its stock price surged more than 250%.
This trend isn't limited to CoreWeave. Among the top ten insider sellers in the third quarter, seven came from companies benefiting from AI.
CoreWeave Executives Lead the Cash-Out Wave
As a standout "newcomer" in the AI space, CoreWeave has delivered stunning stock performance since its March IPO, bringing substantial returns to early investors and executives. Immediately after the lock-up expired, large-scale cash-outs followed.
According to Washington Service, Jack Cogen, a company director, sold $477 million worth of shares in the third quarter, making him the largest insider seller. Close behind was co-founder Brannin McBee, who realized $426 million through share sales.
The report noted both sales were executed under pre-arranged "10b5-1" trading plans tied to specific stock price targets.
Besides executives, Magnetar Financial LLC, CoreWeave’s largest institutional shareholder, sold nearly $1.9 billion in shares during the same period.
However, a filing from October shows that the Illinois-based hedge fund still holds over 20% of the company's Class A shares after the reduction. Neither CoreWeave nor Magnetar commented on the transactions.
AI Boom Creates Big Sellers: Jensen Huang Cashes Out Over $743 Million
CoreWeave’s insider selling is just a microcosm of widespread wealth realization across the AI industry. The third-quarter list of top insider sellers features numerous names from AI-driven companies, highlighting how this technological revolution is dramatically boosting personal fortunes.
Arista Networks' stock hit a record high following its analyst day in September. CEO Jayshree Ullal sold over 6 million shares under her "10b5-1" plan in the third quarter, totaling $861 million—ranking second on the list.
Jensen Huang, CEO of Nvidia, the undisputed leader in AI chips, continued executing his planned sales, cashing out over $743 million in the third quarter. According to Washington Service, total insider减持 by Nvidia insiders reached nearly $1.5 billion in the first three quarters of 2025.
Cashing Out $4.917 Billion, Amazon Founder Bezos Tops the List
Despite frequent sell-offs by AI executives, the biggest insider seller in the third quarter was Amazon founder Jeff Bezos.
He completed a sale of 21.675 million shares, cashing out a staggering $4.917 billion—more than the combined total of the other nine sellers on the list.
This sale was part of a broader plan between June and July to sell 25 million shares worth nearly $5.7 billion. According to data compiled by Bloomberg, Bezos frequently uses proceeds from stock sales to fund other ventures, including his space company Blue Origin.
Other Notable Names on the List
Besides the above, the third-quarter top ten insider sellers include several other billionaires from tech and finance:
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Frank Slootman: Chairman of cloud data company Snowflake, sold $463 million in shares.
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Tony Ressler: Co-founder of investment firm Ares Management Corp., sold $357 million in shares.
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Herald Chen: Director and former CFO of mobile ad tech company AppLovin Corp., sold nearly $313 million in shares.
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Baiju Bhatt: Co-founder of trading platform Robinhood Markets Inc., sold nearly $300 million in shares.
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Brian Armstrong: CEO of cryptocurrency exchange Coinbase Global Inc., sold $268 million in shares. He previously stated on social media that proceeds would fund scientific research and a biotech startup he co-founded.
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