OpenAI Eyes Historic IPO with Valuation Target Up to $1 Trillion

According to an article published by Reuters, OpenAI is preparing for what may be one of the largest initial public offerings in history, which could value the business at up to $1 trillion. The story further noted that OpenAI is thinking about registering with securities regulators as early as the second half of 2026.

According to the people, the corporation has considered raising at least $60 billion in early talks, if not more. They issued a warning that negotiations are still in their early stages and that plans, including budget and schedule, may alter based on market conditions and company expansion.

OpenAI is Expected to go Public by 2027

Sarah Friar, the company's chief financial officer, informed several colleagues that the company plans to list in 2027. However, some advisors believe it might happen as early as late 2026. An IPO is not the company's objective, so it is impossible that OpenAI could have set a date, according to a spokeswoman.

"We are building a durable business and advancing our mission so everyone benefits from AGI." With the completion of a difficult restructuring that lessens its reliance on Microsoft (MSFT.O), the ChatGPT maker is feeling a renewed desire to access public markets, as shown by the IPO preparations. According to those familiar with the company's thinking, an IPO would help finance CEO Sam Altman's aspirations to invest billions of dollars in AI infrastructure by facilitating more effective capital raising and enabling larger acquisitions using public stock.

According to the people, losses are also growing within the $500 billion corporation, which is forecast to have an annualised sales run rate of roughly $20 billion by year's end. On October 28, Altman discussed the prospect of going public in a webcast. "I think it's fair to say it is the most likely path for us, given the capital needs that we'll have," he stated.

OpenAI Planning for Major Overhaul

In 2015, OpenAI was founded as a charity. In order to give the nonprofit supervision and control over the for-profit division, the corporation reorganised its structure a few years later. The nonprofit's primary objective was to guarantee that OpenAI developed AI technology in a safe manner, as opposed to putting profits first like a regular business would.

This week, OpenAI made yet another redesign. The nonprofit organisation that still controls it, now known as the OpenAI Foundation, owns 26% of OpenAI Group and has the right to buy more shares if the business reaches specific goals. The organisation now has a substantial financial stake in OpenAI as a result of this shift.