Report: OpenAI Gears Up for $1T IPO

OpenAI is gearing up for what is expected to be one of the biggest initial public offerings in history. The ChatGPT creator is considering a regulatory filing as soon as the second half of 2026, Reuters reports, citing three sources familiar with the discussions. The sources say the IPO could value the company at up to $1 trillion but stress that all details, including timing and valuation, remain fluid and depend on business performance and broader market trends. Chief Financial Officer Sarah Friar has hinted at a possible 2027 listing, though some advisers believe the timeline could accelerate to late 2026.

An OpenAI spokesperson downplayed the rumors, saying an IPO isn't the company's current priority: "We are building a durable business and advancing our mission so everyone benefits" from artificial generative intelligence. Still, CEO Sam Altman recently acknowledged that going public is likely, citing the company's growing capital needs.

• The Wall Street Journal reports that the corporate restructuring completed this week, which paves the way for the IPO, came after talks to keep the company in California. In a post on X, Altman said: "California is my home, and I love it here, and when I talked to Attorney General Bonta two weeks ago I made clear that we were not going to do what those other companies do and threaten to leave if sued."

OpenAI, which started as a nonprofit in 2015, is now overseen by the OpenAI Foundation, a nonprofit with a 26% stake and warrants for more shares if milestones are met. The overhaul reduces OpenAI's reliance on Microsoft, which owns about 27% after investing $13 billion. Other investors, including SoftBank, Thrive Capital, and Abu Dhabi's MGX stand to benefit if the IPO succeeds.

story continues below

The IPO plans suggest an "urgency" to raise more capital to finance Altman's plans for massive investments in AI infrastructure, according to Reuters' sources. Revenue is expected to hit $20 billion by the end of the year, but losses are also mounting as OpenAI, currently valued at around $500 billion, ramps up spending. The company's deliberations come amid a broader AI-driven market surge—Nvidia just hit a $5 trillion market cap, and other AI firms are also seeing record valuations.