OpenAI is reportedly preparing for a significant stock market listing that could value the company at an astonishing $1 trillion (£760 billion), potentially occurring as early as next year. This move is seen as one of the largest initial public offerings (IPOs) in history. According to information from Reuters, which cites sources familiar with the company’s plans, OpenAI may consider filing for an IPO in the second half of 2026, with the goal of raising at least $60 billion.
This potential stock market debut would provide OpenAI with additional avenues for raising funds, supporting the ambitions of Chief Executive Sam Altman, who aims to invest trillions of dollars into building required infrastructure, including datacenters, to facilitate the rapid development of its AI technologies, particularly the popular chatbot ChatGPT. During a recent livestream for staff, Altman reportedly mentioned, “I think it’s fair to say it [an IPO] is the most likely path for us, given the capital needs that we’ll have.”
In a statement, an OpenAI spokesperson emphasized that an IPO is not the company’s immediate focus, suggesting that there is no definitive timeline for such a move. The spokesperson noted, “We are building a durable business and advancing our mission so everyone benefits from AGI.” The term AGI, or artificial general intelligence, refers to highly autonomous systems capable of outperforming humans in a variety of economically valuable tasks.
Founded as a nonprofit in 2015, OpenAI has operated with the mission of developing AGI for the benefit of humanity. However, it recently completed a significant restructuring, transitioning its main business into a for-profit entity. While it retains oversight from the nonprofit side, this change is designed to facilitate capital raising and sets the stage for a future IPO. As part of the restructuring, Microsoft acquired a 27% stake in OpenAI, which was valued at $500 billion in the deal. This arrangement was influential enough to push Microsoft’s market valuation past the $4 trillion mark for the first time.
Financial reports indicate that OpenAI generated revenues of $4.3 billion in the first half of this year, although it also recorded an operating loss of $7.8 billion. Such burgeoning valuations have raised concerns among analysts and financial institutions, particularly regarding the sustainability of the current tech stock prices, which some fear may be indicative of a bubble. Officials from the Bank of England have expressed concern about the risks associated with inflated tech stock prices triggered by the AI boom, cautioning that market expectations surrounding AI could shift.
OpenAI’s Chief Financial Officer, Sarah Friar, reportedly indicated a target for an IPO in 2027, although some advisors believe it may happen a year earlier. As the company continues to innovate and expand its capabilities, the tech industry will closely monitor these developments and their potential impact on the broader market.
