OpenAI Eyes 2027 IPO as Tech Stock Volatility Clouds Listing Plans
The startup behind the popular AI chatbot is considering delaying its IPO until 2027, reports say, citing persistent volatility in technology equities and concerns over investor demand for high-valued AI companies. The manufacturer of ChatGPT had been aiming for a valuation of about $1 trn.
It is widely believed that OpenAI would delay its initial public offering (IPO) until 2027. Retail investors may be less enthusiastic about OpenAI's offering due to the recent volatility in tech equities and SpaceX's shares following its record IPO, according to bankers advising the ChatGPT developer on its IPO ambitions.
One of OpenAI's key investors, SoftBank Group, had its stock price drop by 12% on June 26, after delayed IPO news broke out. In May, SoftBank's market capitalisation surpassed that of Toyota Motor because of the widespread belief that the company will receive a large windfall from the public debut of OpenAI. This belief drove SoftBank shares to record high.
OpenAI and Anthropic Competing in IPO Race
Both OpenAI and its competitor Anthropic are rushing to get their Wall Street debuts in 2026 so they can get public market investors to back their massive AI chip and data center expenditures. The chief executive officer of the AI company, Sam Altman, engaged advisors like as attorneys and bankers to aim for a valuation of US$1.3 trillion (US$1 trillion).
The firm made a secret filing with the US Securities and Exchange Commission on June 9 in order to launch its initial public offering (IPO). The firm has not yet determined a timeline, therefore it might be some time before it does so. This is because there are certain things the firm wants to accomplish that would be easier to accomplish as a private corporation, OpenAI said. Additionally, the firm mentioned that there are a number of complex considerations, but that this does provide it with the opportunity to go public sooner if it turns out to be the best course of action.
Why IPO Became a Preferred Move for AI Firms?
In April, OpenAI's CFO Sarah Friar stated that, for a firm of its scale, acting and seeming like a public corporation is good hygiene. She hadn't mentioned when the listing would open. Regardless of the success or failure of competitors Anthropic and OpenAI, PerplexityAI CEO Aravind Srinivas told the media on 9 June that the AI company plans to complete its initial public offering (IPO) in 2028.
Srinivas expressed his belief that the success of these initial public offerings (IPOs) is crucial for the artificial intelligence (AI) sector, and he is confident that they will achieve this success. Still, he did mention that the AI firm has plans for 2028 that are "agnostic" to the success or failure of Anthropic or OpenAI's listings. Dmitry Shevelenko, Chief Business Officer of Perplexity, added that the company has grown steadily and healthily since setting its earliest IPO date at 2028.
