OpenAI, the parent company of ChatGPT, is reportedly preparing for what could become one of the largest initial public offerings (IPOs) in history, with a potential valuation of around $1 trillion. This information comes from sources familiar with the matter, as initially reported by Reuters.
This development follows closely on the heels of the San Francisco-based artificial intelligence (AI) company achieving a $500 billion valuation just last month, solidifying its position as the world's most valuable startup.
Sources indicate that the company is considering filing with securities regulators as early as the second half of 2026, although a 2027 listing is also under discussion. In preliminary discussions, OpenAI has reportedly explored raising at least $60 billion in the offering, with the final figure potentially being significantly higher.
Despite the immense scale of the potential offering, company executives have been cautious in managing expectations. A company source stated, "An IPO is not our focus, so we could not possibly have set a date. We are building a durable business and advancing our mission so everyone benefits from AGI."
These public listing ambitions arise after a significant restructuring that granted the company more autonomy, particularly from its previous ties with Microsoft. This restructuring has provided greater flexibility for capital raising, acquisitions, and infrastructure scaling. OpenAI's CEO, Sam Altman, recently acknowledged during a livestream that a public offering is "the most likely path for us, given the capital needs that we’ll have."
Reports suggest that the company anticipates reaching an annualized revenue run rate of approximately $20 billion by the end of the current year, even as losses continue to mount, estimated by some to be around $500 billion. The IPO is expected to provide both new capital and the necessary public stock currency for large-scale strategic acquisitions and infrastructure development.
While the projected figures are substantial, the plan is still in its early stages, with both the timing and the final offering size remaining subject to change. The company has reportedly informed associates that the target listing could occur in 2027, though many advisors consider late 2026 to be a plausible timeframe.
Raising $60 billion or more through an IPO would be a historic event, as very few companies have undertaken offerings of such magnitude. For OpenAI, a successful IPO at or near a $1 trillion valuation would place it among the largest public market debuts in history and underscore the widespread investor enthusiasm for AI.
However, the success of this plan will be contingent on continued business growth, prevailing market conditions, and the company's ability to translate its ambitious goals into sustainable commercial outcomes.
An industry analyst highlighted the extensive infrastructure required to support OpenAI's objectives, noting that Altman recently stated the company aims to develop 30 gigawatts of computing resources, requiring an investment of up to $1.4 trillion.
Implications of OpenAI's IPO and Valuation
For the broader technology sector, OpenAI's IPO plans signify a growing acknowledgment that the AI revolution is entering a new phase, characterized by scale, infrastructure, and monetization, beyond just research breakthroughs.
A public listing would also represent a significant milestone for OpenAI's investors, including SoftBank, Thrive Capital, Abu Dhabi’s MGX, and Microsoft, which reportedly holds approximately 27% of the company following a $13 billion investment.
Furthermore, the timing of the IPO could influence capital markets sentiment. If OpenAI successfully enters the public markets with such a high valuation, it could encourage other AI-driven companies to pursue IPOs, while also prompting discussions about valuations, competition, and risks within the sector.
Ultimately, OpenAI's plans for a significant IPO reflect both the scale of its ambitions and the ongoing transformation within the tech industry. While the precise timing and details remain uncertain, if the reports hold true, this event is poised to be a defining moment for AI and Silicon Valley.