OpenAI plans $60B IPO, aims for a whopping $1T valuation
What's the story
OpenAI, the artificial intelligence (AI) company behind ChatGPT, is preparing for a massive initial public offering (IPO). The move could value the company at as much as $1 trillion. According to reports, the preparations are underway for a potential listing in late 2026 or 2027. This comes just after OpenAI completed its restructuring, with its non-profit arm retaining a controlling stake in the for-profit business.
Funding goals
Plans may change based on market conditions
The company is said to be considering filing with securities regulators as soon as the second half of 2026. In preliminary discussions, it has considered raising at least $60 billion from the IPO. However, these talks are still early and plans may change depending on business growth and market conditions. OpenAI's CFO Sarah Friar has reportedly told some associates that the company is targeting a 2027 listing but some advisers think it could come sooner, around late 2026.
Official statement
An IPO is not our focus, says OpenAI
An OpenAI spokesperson said, "An IPO is not our focus, so we could not possibly have set a date." They added that the company is focused on building a durable business and advancing its mission for everyone to benefit from artificial general intelligence (AGI). The preparations for the IPO show an increased urgency within the ChatGPT maker to tap public markets after its complex restructuring.
Strategic move
An IPO would allow OpenAI to raise capital efficiently
An IPO would allow OpenAI to raise capital more efficiently and make bigger acquisitions with public stock. This would help fund CEO Sam Altman's plans to invest trillions of dollars into AI infrastructure. Despite an annualized revenue run rate expected to hit about $20 billion by year-end, losses are also mounting inside the company. During a livestream on Tuesday, Altman hinted at going public saying it's "the most likely path for us."
Corporate evolution
OpenAI started as a non-profit in 2015
OpenAI started as a non-profit in 2015 before restructuring into a for-profit arm with non-profit oversight. The latest change gives the OpenAI Foundation, which controls the company, a 26% stake in OpenAI Group and warrants for more shares if certain milestones are met. This makes the nonprofit a major player in OpenAI's financial success. A successful IPO would be a huge win for investors like SoftBank, Thrive Capital and Abu Dhabi's MGX.