OpenAI, the company behind ChatGPT, is exploring an
initial public offering (IPO) that may value it as high as $1 trillion, potentially
placing it among the largest public listings in history.
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Sources cited by Reuters say the artificial
intelligence giant is weighing a regulatory filing as soon as late 2026, though
timing remains fluid. The plans mark a turning point for the company, which has
spent years balancing commercial expansion with its founding nonprofit principles.
Moving Away from Nonprofit Principles
According to early estimates, executives and advisers have discussed raising at least $60 billion in the offering.
OpenAI’s Chief Financial Officer, Sarah Friar, has reportedly told some
associates that the company is targeting a 2027 listing, while others believe
it could happen sooner.
In a recent livestream, CEO Sam Altman acknowledged
that going public is becoming increasingly likely. Despite public speculation, the company
maintains that a listing is not its immediate focus.
Founded in 2015 as a nonprofit research lab, OpenAI
was originally created to ensure that AI development benefited society rather
than shareholders. That mission evolved as the company needed massive capital
to train large models like GPT-4 and develop products such as ChatGPT and
DALL·E.
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A series of structural changes followed. In 2019, the company introduced a capped-profit model, giving investors returns up to a
certain limit while keeping the nonprofit in control.
The latest restructuring also reduces OpenAI’s
dependency on Microsoft, which has invested billions of dollars in exchange for
preferred access to its AI models. By preparing for an IPO, OpenAI could
diversify its funding base and gain more flexibility to pursue acquisitions or
infrastructure projects independently.
$1 Trillion Target Dwarfs Recent IPOs
If the IPO materializes, OpenAI could join the ranks
of the world’s most valuable public tech companies, alongside Apple and
Microsoft. OpenAI’s targeted IPO valuation dwarfs some of the most recent listings. Circle, the issuer of the USDC stablecoin, which went public in June, initially targeted $6.71 billion on a fully diluted basis.
Israeli fintech company eToro also made its Nasdaq debut under the ticker ETOR in October, after pricing its initial public offering at $52 per share, with a market capitalization of more than $4 billion. The shares opened
strongly, climbing above the offering price shortly after trading began.
Even the Swedish fintech giant Klarna, which completed its
long-awaited U.S. initial public offering last month, can’t come any closer to
OpenAI’s targeted valuation. The firm raised $1.37 billion in New York and achieved
a market capitalization of approximately $15.2 billion. Another well-known brand in the crypto space, Gemini, is eying a $2.2 billion valuation in a planned listing.
This article was written by Jared Kirui at www.financemagnates.com.
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