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Updates with more context on OpenAI
Investing.com-- OpenAI is preparing for an initial public offering that could value the company as much as $1 trillion, Reuters reported on Wednesday, citing three people familiar with the matter.
The AI startup will seek to raise at least $60 billion from the offering, and is targeting a filing by the second half of 2026 and a listing in 2027, the Reuters report said.
The report comes shortly after OpenAI reached an agreement with top backer Microsoft Corporation (NASDAQ:MSFT) which will allow the AI startup to transition into a for-profit entity.
The reported IPO stands to be the biggest in the world, and could give OpenAI CEO Sam Altman the capital needed to carry out his ambitious AI agenda.
The company has committed hundreds of billions of dollars in spending on AI chips and data center infrastructure, which it says is aimed at its long-term goal of achieving AI that is comparable to human intelligence.
A successful IPO would likely mark major wins for OpenAI backers, which include Microsoft, Softbank, and Abu Dhabi’s MGX.
Wednesday’s report comes as AI drives a stellar rally in public markets, as seen with Nvidia becoming the first company to achieve a $5 trillion valuation earlier in the day.
But OpenAI’s plans for an IPO still come as the company struggles with a massive cash burn rate and few paths for profitability.
Reports earlier in October showed the company generated $4.3 billion in revenue in the first half of 2025, with money coming largely from subscriptions and corporate deals. But the company also logged a $13.5 billion loss in the first half.