OpenAI Plans Historic IPO Targeting $1 Trillion Valuation

OpenAI, the creator of ChatGPT, is preparing for one of the most significant stock market listings in history, with a potential valuation of up to $1 trillion. The company aims to raise at least $60 billion through the initial public offering (IPO), according to individuals familiar with early discussions. Although plans remain preliminary, the scale of the proposed listing has already drawn major market attention.

IPO Timeline and Strategy

OpenAI’s Chief Financial Officer, Sarah Frier, has reportedly indicated a target for a 2027 public debut. However, some financial advisers believe the listing could occur as early as late next year. CEO Sam Altman has previously acknowledged that an IPO is the most viable route to sustain the company’s capital-intensive AI development, which demands significant funding for data centres and advanced computing infrastructure.

Financial Performance and Growth

The firm’s revenue is projected to reach an annualised rate of approximately $20 billion by the end of 2025. However, despite the soaring revenue, sources suggest that OpenAI’s expenses and losses are also increasing as it scales its operations. The company’s focus remains on maintaining leadership in the generative AI sector, competing with industry giants such as Google and Anthropic.

Microsoft Partnership and Structural Reforms

OpenAI recently underwent a major restructuring agreement with Microsoft, designed to separate it from its original non-profit framework. This deal, following Microsoft’s $13 billion investment, grants the tech giant around a 27% equity stake in OpenAI. The restructuring enables OpenAI to pursue large-scale financing while preserving its research objectives in artificial intelligence.

Exam Oriented Facts

• OpenAI plans to raise at least $60 billion through its IPO.
• Microsoft holds a 27% stake in OpenAI after a $13 billion investment.
• Revenue is projected to hit a $20 billion annualised rate by 2025.
• The IPO could value OpenAI at up to $1 trillion.

Market Context and Industry Impact

The proposed IPO aligns with a wider AI-driven rally in global markets. Earlier this year, AI cloud firm CoreWeave went public at a $23 billion valuation and has since tripled in value. Meanwhile, Nvidia recently became the first company to reach a $5 trillion market capitalisation, underlining the surging investor appetite for AI-related ventures. A successful OpenAI IPO would further cement artificial intelligence as the defining force in the next era of technology growth.