OpenAI is preparing for an initial public offering (IPO) that could target a valuation of around $1 trillion, according to three people familiar with the matter, which could become one of the largest IPOs ever and provide CEO Sam Altman with a larger pool of funds to pursue his ambitious plans.
OpenAI is considering submitting a listing application to securities regulators as early as the second half of 2026, a person familiar with the matter said. In preliminary discussions, the company is considering raising at least $60 billion and possibly more, people familiar with the matter said. They cautioned that talks are at an early stage and plans - including figures and timing - could change based on business growth and market conditions.
Chief Financial Officer Sarah Friar told some colleagues the company plans to go public in 2027, people familiar with the matter said. But some consultants predict it could come earlier, around the end of 2026.
An OpenAI spokesperson said: "IPO is not our focus, so it is impossible for us to set a date. We are building a durable business and advancing our mission to enable everyone to benefit from AGI."
IPO preparations indicate a new sense of urgency within the ChatGPT maker to take advantage of the public markets as a complex restructuring is completed that reduces its reliance on Microsoft. People familiar with the company's thinking said an IPO would open the door to more efficient financing and make it possible to use public stock to make larger acquisitions, helping to fund CEO Sam Altman's plan to pour trillions of dollars into AI infrastructure.
OpenAI's annualized revenue is expected to reach about $20 billion by the end of the year, people familiar with the matter said, while internal losses at the company valued at $500 billion are also mounting.
Altman discussed the possibility of a listing during a conference call on Tuesday. "I think it's fair to say, given our funding needs, that's the most likely route we're going to go," he said.