$1 trillion valuation? OpenAI IPO could smash records - AI giant set to shake up Wall Street

31/10/2025 07:15 AST

Artificial intelligence giant OpenAI is laying the groundwork for a potential initial public offering (IPO) that could value the ChatGPT maker at as much as $1 trillion, according to a Reuters report.

The company is reportedly considering filing with regulators as early as the second half of 2026, with plans to raise at least $60 billion, the report added, citing "three people familiar with the discussions".

The move would make it one of the biggest IPOs in history.

They emphasised that the talks are preliminary and that the final figures and timing could still shift depending on OpenAI's growth and broader market conditions.

Listing date
Chief Financial Officer Sarah Friar has told associates that the company is targeting a 2027 listing, though some advisers believe it could happen sooner, by late 2026.

"An IPO is not our focus, so we could not possibly have set a date," an OpenAI spokesperson said.

"We are building a durable business and advancing our mission so everyone benefits from AGI."

More acquisitions
The IPO plans highlight a new urgency within OpenAI to access public capital markets following a recent corporate restructuring that reduced its dependence on Microsoft.

Going public would allow the company to raise funds more efficiently and pursue larger acquisitions, helping CEO Sam Altman finance his ambitious vision to invest trillions of dollars in AI infrastructure, the people said.

Revenue
OpenAI's annualised revenue run rate is projected to reach $20 billion by the end of the year, though losses are also increasing, they added.

During a livestream on Tuesday, Altman hinted at the possibility of going public:

"I think it's fair to say it is the most likely path for us, given the capital needs that we'll have," he said.

Restructuring
Founded in 2015 as a nonprofit, OpenAI later restructured into a hybrid model with a non-profit overseeing its for-profit operations to ensure its AI developments remained focused on safety, not just profit.

Another reorganisation
This week, the company reorganised once more: the OpenAI Foundation - the new name of the nonprofit - now holds a 26% stake in OpenAI Group, with warrants to acquire more shares if performance targets are met. The change makes the foundation a major financial stakeholder in OpenAI's future success.

Significant win
A successful IPO would mark a significant win for investors such as SoftBank, Thrive Capital, and Abu Dhabi's MGX.

Microsoft, OpenAI's largest corporate backer, currently owns about 27% of the company after investing $13 billion.

The move comes amid a broader AI-fuelled stock market surge.

Earlier this year, AI cloud firm CoreWeave went public at a $23 billion valuation and has since tripled.

On Wednesday, Nvidia became the first company to hit a $5 trillion market cap, cementing its dominance at the heart of the AI boom.

The Wall Street Journal was the first to report that OpenAI could go public as early as 2027.

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