OpenAI’s Potential $1 Trillion IPO: What This Means for Investors and Tech Entrepreneurs
SAN FRANCISCO — OpenAI is preparing for an initial public offering (IPO) that could value the company at up to $1 trillion, according to three sources familiar with the matter. This potential IPO may become one of the largest listings in history.
The creator of ChatGPT is considering filing with U.S. securities regulators as early as the second half of 2026. Initial plans have focused on raising at least $60 billion, though the final details and timing may change based on market conditions and business development.
Chief Financial Officer Sarah Friar has indicated to some associates that the company targets a 2027 listing, but advisors suggest the IPO could occur sooner, possibly in late 2026.
An OpenAI spokesperson emphasized, “An IPO is not our focus, so we could not possibly have set a date. We are building a durable business and advancing our mission so everyone benefits from AGI.”
This IPO preparation follows a significant corporate restructuring aimed at reducing OpenAI’s dependency on Microsoft. The new structure, finalized this week, places control under a nonprofit entity now called the OpenAI Foundation, which holds a 26% stake in OpenAI Group and may receive additional shares if certain milestones are achieved.
Going public would provide OpenAI with greater access to capital markets and enable acquisitions through stock-based deals, supporting CEO Sam Altman’s vision to invest trillions of dollars in artificial intelligence infrastructure.
Despite projecting annualized revenue of $20 billion by year-end, OpenAI is experiencing growing losses, according to the sources. During a recent livestream, Altman acknowledged that an IPO was the “most likely path” given the company’s substantial capital requirements.
The anticipated IPO would be a significant milestone for investors such as SoftBank, Thrive Capital, and Abu Dhabi’s MGX. Microsoft, one of OpenAI’s largest investors, holds about 27% of the company following its $13 billion investment.
These developments come amid a rapidly growing AI market. Earlier this year, the AI cloud computing firm CoreWeave went public with a $23 billion valuation, which has since tripled. On Wednesday, Nvidia became the first company to reach a $5 trillion market capitalization, highlighting strong investor enthusiasm for the sector.
The Wall Street Journal previously reported that OpenAI could go public as early as 2027. — Reuters
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