OpenAI Plans IPO That Could Value Company at a Massive $1 Trillion by 2026

TLDR

• OpenAI is preparing for an IPO that could value the company at up to $1 trillion, potentially filing as soon as the second half of 2026
• The company plans to raise at least $60 billion in the offering, which would be one of the largest IPOs in history
• OpenAI recently completed a restructuring that converted it from a nonprofit to a public benefit corporation, with the nonprofit foundation retaining a 26% stake
• The company has an annualized revenue run rate of about $20 billion by year-end but is operating at a loss
• Microsoft owns approximately 27% of OpenAI after investing $13 billion, while other major investors include SoftBank, Thrive Capital, and Abu Dhabi’s MGX

OpenAI is laying the groundwork for an initial public offering that could value the artificial intelligence company at up to $1 trillion. Three people familiar with the matter told Reuters that the ChatGPT maker is considering filing with securities regulators as soon as the second half of 2026.

The company is looking at raising at least $60 billion in the IPO. Sources say the actual amount raised could be higher depending on business growth and market conditions.

Chief Financial Officer Sarah Friar has reportedly told associates the company is targeting a 2027 listing. However, some advisers believe the IPO could happen sooner, possibly in late 2026.

Recent Restructuring Paves the Way

OpenAI completed a major restructuring this week that changed its corporate structure. The company started as a nonprofit in 2015 and later created a for-profit arm overseen by the nonprofit.

Under the new structure, OpenAI operates as a public benefit corporation. The nonprofit, now called the OpenAI Foundation, holds a 26% stake in OpenAI Group. The foundation also has a warrant to receive more shares if the company hits certain milestones.

This restructuring reduces OpenAI’s dependence on Microsoft. The tech giant currently owns about 27% of OpenAI after investing $13 billion.

The IPO would allow OpenAI to raise capital more efficiently. It would also enable the company to make larger acquisitions using public stock.

OpenAI’s annualized revenue is expected to reach about $20 billion by year-end. The company is currently valued at $500 billion in private markets. However, sources say losses are mounting inside the company.

Major Investors Stand to Benefit

A successful IPO would benefit several major investors. SoftBank, Thrive Capital, and Abu Dhabi’s MGX all hold stakes in OpenAI. Microsoft remains one of the biggest backers with its 27% ownership.

The IPO preparations come as AI companies drive activity in public markets. AI cloud company CoreWeave went public earlier this year at a $23 billion valuation. Its stock has roughly tripled since the listing.

Nvidia reached a $5 trillion market value on Wednesday. The chip maker’s rally reflects its central role in the AI boom.

OpenAI spends more on marketing and equity options than it generates in revenue. This spending pattern suggests the company needs fresh capital to sustain its operations. The company is pouring money into building more computing power, an effort expected to require tens of billions in investment.

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