Key Points
- OpenAI is reportedly planning an IPO that could value the company at up to $1 trillion, potentially by late 2026 or 2027.
- The company aims to raise at least $60 billion through the IPO to fund CEO Sam Altman’s multi-trillion-dollar AI infrastructure plans.
- An IPO would allow more efficient capital raising and larger acquisitions, reducing its reliance on Microsoft after a recent restructuring.
- OpenAI, currently valued at $500 billion with an expected $20 billion annual revenue run rate, is also facing mounting losses.
OpenAI is reportedly getting ready for an initial public offering (IPO) that could value the company at a staggering $1 trillion. If this happens, it would be one of the biggest IPOs ever. Three people close to the matter shared this information.
Some sources say OpenAI might file with securities regulators as early as the second half of 2026. In early talks, the company has considered raising at least $60 billion, and likely more. However, these people warned that discussions are still early, and plans, including exact figures and timing, could change as business growth and market conditions evolve.
Chief Financial Officer Sarah Friar has apparently told some colleagues that the company aims to list in 2027. But some advisors believe it could happen even sooner, perhaps around late 2026. An OpenAI spokesperson, however, stated, “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.”
These IPO preparations signal that the maker of ChatGPT is increasingly eager to go public, especially now that a complex restructuring has reduced its dependence on Microsoft. An IPO would make it easier to raise capital and enable larger acquisitions using public stock. This would help fund CEO Sam Altman’s plans to pour trillions of dollars into AI infrastructure, according to people familiar with the company’s thinking.
OpenAI expects its yearly revenue run rate to hit about $20 billion by the end of the year. However, losses are also growing inside the $500 billion company.
During a livestream on Tuesday, Altman talked about the possibility of going public. He said, “I think it’s fair to say it is the most likely path for us, given the capital needs that we’ll have.”
OpenAI started as a nonprofit organization in 2015. A few years later, the company changed its structure so the nonprofit would oversee and control its for-profit arm. The nonprofit’s main goal was to ensure that OpenAI developed AI technology safely, without focusing solely on profits like a typical company.
This week, OpenAI changed its structure again. It is still controlled by a nonprofit, now called the OpenAI Foundation. However, this nonprofit now holds a 26% stake in OpenAI Group and has the right to receive more shares if the company reaches certain goals. This change makes the nonprofit a significant financial stakeholder in OpenAI’s success.
A successful IPO would be a huge win for investors like SoftBank, Thrive Capital, and Abu Dhabi’s MGX. Microsoft, one of its biggest supporters, now owns about 27% of the company after investing $13 billion.
These discussions come as AI is fueling a boom in public markets. Earlier this year, AI cloud company CoreWeave went public with a $23 billion valuation and has since roughly tripled. On Wednesday, Nvidia became the first company to reach a $5 trillion market value, driven by a rally that has cemented its role at the center of the global AI boom.
The Wall Street Journal first reported on the possibility of OpenAI going public as early as 2027.
