OpenAI has started preparing for an initial public offering (IPO) that may value the company at $1 trillion, Reuters reported citing three people aware of the development. At this valuation, OpenAI will enter the market with one of the biggest IPOs of all time.
ChatGPT maker is planning to file for an IPO with securities regulators by the second half of 2026. According to the preliminary discussions, OpenAI may raise $60 billion at the low end and likely more, the report noted. However, they cautioned that talks are early, and plans—including the figures and timing could change depending on business growth and market conditions.
Meanwhile, OpenAI is aiming for a 2027 listing, Chief Financial Officer Sarah Friar has told some associates, people familiar with the development told the news portal. But some advisers expect that the IPO may come sooner, by the end of 2026.
“An IPO is not our focus, so we could not possibly have set a date,” an OpenAI spokesperson told the news agency. “We are building a durable business and advancing our mission so everyone benefits from AGI.”
The IPO plans indicate a growing urgency within the ChatGPT creator to go public now that a complex restructuring has been finalised, reducing its dependence on Microsoft. An IPO could facilitate more effective capital raising and allow larger acquisitions through the use of public stock, supporting CEO Sam Altman’s strategy to invest trillions of dollars into AI infrastructure, people aware of the matter told Reuters.
Microsoft currently owns about 27% of the company after an investment of $13 billion.
OpenAI’s annualised revenue run rate projected to hit approximately $20 billion by the end of the year, losses are also increasing within the $500 billion company, they added.
Addressing the IPO plans, Sam Altman said during a livestream on Tuesday, “I think it’s fair to say it is the most likely path for us, given the capital needs that we’ll have.”
OpenAI’s major restructuring move
OpenAI began as a nonprofit in 2015. A few years later, the organisation restructured to give the nonprofit oversight and control over the for-profit division. The primary aim of the nonprofit was to ensure that OpenAI developed AI technology safely, rather than focusing on profits like a conventional company.
Recently, ChatGPT underwent another transformation. The organisation remains under the control of a nonprofit, now named the OpenAI Foundation. However, this nonprofit holds a 26% stake in OpenAI Group and has a warrant to acquire more shares if the company reaches specific milestones. This adjustment establishes the nonprofit as a major stakeholder in OpenAI’s financial performance.
The discussions occur as AI fuels a surge in public markets. Earlier this year, AI cloud provider CoreWeave went public with a valuation of $23 billion, and its valuation has nearly tripled since then. On Wednesday, Nvidia became the first firm to achieve a $5 trillion market capitalisation, driven by a rally that has solidified its position at the heart of the worldwide AI boom.
(With inputs from Reuters.)
