key takeaways
- According to a new report, OpenAI is considering an initial public offering (IPO), which could value the company at $1 trillion.
- The move would be one of the largest IPOs in history.
- OpenAI denied the report, with a spokesperson saying that the IPO was not a focus of the company.
OpenAI is reportedly eyeing an initial public offering (IPO) that could value the company at up to $1 trillion – one of the largest IPOs ever.
according to a Reuters report Published on Wednesday, OpenAI is laying the groundwork for one of the largest IPOs ever and is looking to file in the second half of 2026. In discussions, the company has considered raising $60 billion at the bottom, and possibly more, which would bring the company’s valuation to $1 trillion.
However, OpenAI has denied the report. A company spokesperson told Reuters that “IPO is not our focus, so we can’t possibly set a date.”
“We are building a sustainable business and pursuing our mission so that everyone can benefit from AGI,” the spokesperson told the outlet. AGI is artificial general intelligenceOr technology that can match or surpass human cognitive abilities in any intellectual or practical task.
Connected: OpenAI is paying ex-investment bankers $150 an hour to train its AI
Was the only company to debut on public markets at or above the trillion-dollar level saudi aramcoNational Oil Company of Saudi Arabia and World’s largest oil producerThe company went public in December 2019 with an initial market capitalization of approx. $1.7 trillion,
All other major IPOs launched at much lower valuations, typically less than $200 billion. For example, Meta (then Facebook) raised $16 billion in its 2012 IPO, raising the company’s valuation. at 104 billion dollarsof visa 2008 ipo rated company approximately $36 billionBoth companies have made great progress since their early days. meta is now seventh largest company in the world, with a market capitalization of over $1.6 trillion, while Visa is seventeenth largest companyWith a market cap of approximately $672.5 billion.
Going public would make it much easier for OpenAI to raise money and make big deals using its own stock — a boost to CEO Sam Altman’s ambitious vision of investing trillions of dollars in building AI infrastructure, people familiar with the company’s direction told Reuters.
Connected: OpenAI made more money in the first six months of the year than in 2024
Altman said in a livestream Said on Tuesday that an IPO was the “most likely path” for OpenAI, as large amounts of capital are required to fund AI infrastructure plans and acquisitions. OpenAI recently acquired Statsig, a platform for software experimentation and feature testing. For approximately $1.1 billion in August, as well as io Products, a design firm founded by former Apple designer Jony Ive, for $6.5 billion in May.
“I think it’s fair to say that this is the most likely path for us given our capital needs,” Altman said, speaking about an IPO on a livestream.
OpenAI Started as a non-profit organization In 2015, the goal was set to develop safe AI that would benefit society rather than focusing on profits. A few years later, OpenAI created a new structure with a for-profit arm, but the nonprofit retained control to ensure that its core mission remained front and center. The nonprofit’s job was to oversee the company’s direction and make security a top priority, unlike normal companies that answer mostly to shareholders.
This week, OpenAI updated its structure again. The nonprofit, now called the OpenAI Foundation, still holds the reins, but this time it has a 26% stake in the new for-profit OpenAI Group and the right to acquire more shares if the company meets certain benchmarks. The nonprofit isn’t just guiding OpenAI’s mission; It is now a major stakeholder in the financial growth of the company.
The news of OpenAI’s potential IPO comes as the AI boom drives the stock market. CNN report The S&P 500 is up nearly 36% in just six months, largely due to enthusiasm for AI companies like Nvidia, which on Wednesday became the first company to reach a market cap of $5 trillion. A day earlier, Apple became the third company to achieve a market capitalization of $4 trillion, after Nvidia and Microsoft achieved the milestone in July.
Connected: ChatGPT can now run apps like Zillow and Spotify: ‘A huge deal’
key takeaways
- According to a new report, OpenAI is considering an initial public offering (IPO), which could value the company at $1 trillion.
- The move would be one of the largest IPOs in history.
- OpenAI denied the report, with a spokesperson saying that the IPO was not a focus of the company.
OpenAI is reportedly eyeing an initial public offering (IPO) that could value the company at up to $1 trillion – one of the largest IPOs ever.
according to a Reuters report Published on Wednesday, OpenAI is laying the groundwork for one of the largest IPOs ever and is looking to file in the second half of 2026. In discussions, the company has considered raising $60 billion at the bottom, and possibly more, which would bring the company’s valuation to $1 trillion.
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