Why OpenAI is delaying its IPO to 2027
What's the story
OpenAI, the company behind the popular AI chatbot ChatGPT, is considering delaying its initial public offering (IPO) until 2027, according to The New York Times. The move comes in light of recent fluctuations in tech stocks and SpaceX shares after its record IPO. OpenAI's advisors have warned that these market conditions could affect retail investor interest in an OpenAI IPO.
Strategic options
Two potential paths for OpenAI's IPO
The advisors have given OpenAI two potential paths for its IPO. One option is to wait until 2027 and aim for a staggering $1 trillion valuation. The other is to go public sooner, but with a lower target valuation. However, CEO Sam Altman has reportedly been firm on the trillion-dollar goal, calling it crucial to their plans.
AI model launch
GPT 5.6 launch also pushed back
Separately, OpenAI has also pushed back the launch of its next-gen AI model, GPT 5.6. The delay comes after a request from the US government to first release it to a select group of trusted partners. During an internal meeting, Altman told his employees that the Trump administration had asked for this staggered rollout due to rising concerns over advanced AI capabilities and their potential impact on society at large.