Key takeaways OpenAI is laying groundwork for an IPO that could value the company at up to $1 trillion, making it one of the largest public offerings in history. The company is considering filing with...
OpenAI, the artificial intelligence company behind ChatGPT, is preparing for what could become one of the largest initial public offerings in history, with early discussions targeting a valuation of up to $1 trillion, according to three people familiar with the matter.
The San Francisco-based company is considering filing with securities regulators as soon as the second half of 2026, though the timeline could shift depending on business growth and market conditions.
In preliminary discussions, OpenAI has examined raising at least $60 billion, with the final figure likely to be higher.
The IPO preparations come on the heels of a significant corporate restructuring that received approval from California Attorney General Rob Bonta this week.
The move transforms OpenAI's for-profit arm into a public benefit corporation, reducing its dependence on major backer Microsoft while maintaining oversight from its nonprofit foundation.
In his statement, Bonta said his office conducted a robust investigation over the past year and a half and secured concessions to ensure charitable assets are used for their intended purpose and that safety remains a priority.
He also noted that OpenAI committed to remaining headquartered in California.
CEO Sam Altman responded on social media, writing that California is his home and expressing satisfaction with the resolution.
During a livestream on Tuesday, Altman addressed the likelihood of going public directly, stating that an IPO is "the most likely path for us, given the capital needs that we'll have."
The push toward public markets reflects OpenAI's enormous infrastructure ambitions.
The company expects to reach an annualized revenue run rate of approximately $20 billion by year-end, though losses are mounting as it scales operations.
According to sources familiar with the company's planning, OpenAI requires substantial capital to finance CEO Sam Altman's vision of investing trillions of dollars in AI infrastructure.
Chief Financial Officer Sarah Friar has reportedly told associates the company is targeting a 2027 listing, though some advisers predict it could happen as early as late 2026.
An OpenAI spokesperson stated that an IPO is not the company's current focus and that no date has been set.
Under the restructured arrangement, the OpenAI Foundation, the nonprofit entity, holds a 26% stake in the for-profit OpenAI Group and has received a warrant to obtain additional shares if certain milestones are achieved.
This structure allows the nonprofit to remain a significant stakeholder in OpenAI's financial success while the for-profit arm gains greater flexibility to raise capital and make acquisitions.
Microsoft, which has invested $13 billion in OpenAI, now holds approximately 27% of the company under the new agreement.
During Microsoft's earnings call on Wednesday, CEO Satya Nadella said the arrangement gives his company "more certainty" about intellectual property and the definition of artificial general intelligence.
He added that Microsoft has already seen a tenfold return on its investment, with OpenAI contracting an additional $250 billion in Azure cloud services.
The timing of OpenAI's IPO plans coincides with surging investor enthusiasm for artificial intelligence companies.
Earlier this year, AI cloud company CoreWeave went public at a $23 billion valuation and has roughly tripled in value since.
On Wednesday, Nvidia became the first company to reach a $5 trillion market capitalization, driven largely by demand for AI computing infrastructure.
A successful offering would represent a major win for investors, including SoftBank, Thrive Capital, and Abu Dhabi's MGX, who collectively own significant stakes in the company.
OpenAI achieved a $500 billion private market valuation earlier this year, making it the world's most valuable startup.
However, analysts caution that the company faces challenges in converting its technological leadership into sustainable profitability.
While OpenAI boasts 800 million weekly users, only a small fraction are paying customers, creating pressure to demonstrate a clear path to profitability before public markets.
The company also faces continued legal challenges from Elon Musk, a co-founder who left OpenAI and now runs competing AI firm xAI.
Musk has filed lawsuits alleging the company has abandoned its original nonprofit mission.
Despite these hurdles, OpenAI's move toward public markets signals growing confidence that the AI revolution is entering a new phase defined not just by technological breakthroughs but by large-scale commercialization and infrastructure investment.
Key takeaways OpenAI has signed a multi-year, $10 billion agreement with AI chipmaker Cerebras Systems to secure computing infrastructure. The deal will deliver 750 megawatts of computing power throug...
KEY TAKEAWAYS: xAI implemented restrictions preventing Grok from editing images of real people in revealing clothing after global backlash California Attorney General Rob Bonta launched investigation...
Key takeaways TSMC reported fourth-quarter net income of NT$505.74 billion, beating analyst expectations and setting a new record. Fourth-quarter revenue reached NT$1.046 trillion, up 20.5% year over...
