OpenAI is said to be gearing up for a stock market debut, potentially becoming the largest initial public offering (IPO) ever, with a valuation of $1 trillion (£760 billion) expected as soon as next year.
The creator of the popular AI chatbot ChatGPT is contemplating an IPO filing in the latter half of 2026, as reported by Reuters, based on information from sources close to the matter. The company aims to raise at least $60 billion.
The fluctuations in stock market shares offer OpenAI an additional avenue for funding, supporting CEO Sam Altman’s vision of investing trillions in the construction of data centers and other necessary infrastructure to accelerate chatbot development.
During a livestream on Tuesday, Altman reportedly stated: “Given our future funding needs, this is the most likely path for us.”
An OpenAI representative noted, “We cannot set a date as the IPO is not our priority. Our focus is on building a sustainable business and advancing our mission for the benefit of all through AGI.”
AGI, or artificial general intelligence, is defined by OpenAI as “a highly autonomous system that surpasses humans in performing the most economically valuable tasks.”
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Founded in 2015 as a nonprofit, OpenAI aims to securely develop AGI for the benefit of humanity. Recently, the company underwent a major restructuring, transitioning its core operations to a for-profit model. Although still overseen by a nonprofit, this change facilitates capital raising and prepares the ground for an IPO.
As it stands, Microsoft holds approximately a 27% stake in the commercial entity, valuing OpenAI at $500 billion under the terms of their deal. Following the restructuring announcement, Microsoft’s valuation reached over $4 trillion for the first time.
Technology news outlet Information reported that OpenAI recorded revenues of $4.3 billion alongside an operating loss of $7.8 billion in the first half of this year.
Such enormous valuations do not ease concerns that the AI sector may be in a bubble. Bank of England officials have recently warned that tech stocks driven by the AI surge face heightened risk, noting market vulnerability if expectations about AI impact wane.
OpenAI’s Chief Financial Officer Sarah Friar has reportedly informed colleagues that the company is targeting a public offering in 2027, although some advisers speculate it could occur in the year prior, as reported by Reuters.
Source: www.theguardian.com
