ChatGPT parent OpenAI might hit Wall Street soon in what could become one of the largest IPOs ever. According to sources, the initial public offering would place the company at a valuation of up to $1 trillion. The artificial intelligence giant has been exploring a potential regulatory filing as early as the second half of 2026, Reuters reported citing sources. In initial conversations, OpenAI has examined raising around $60 billion at the lower end, with expectations that the final figure could be higher. However, those familiar with the matter highlighted that discussions are preliminary and that the valuation, timing and size of the fundraising could shift depending on business performance and market conditions.Chief financial officer Sarah Friar has reportedly told some associates that the company is targeting a listing in 2027, although the advisers involved believe that the process could move faster, potentially landing in late 2026.“An IPO is not our focus, so we could not possibly have set a date,” an OpenAI spokesperson told Reuters. “We are building a durable business and advancing our mission so everyone benefits from AGI.”The preparations come after a major internal restructuring aimed at reducing its dependence on Microsoft. An IPO would enable OpenAI to raise capital more efficiently and use publicly traded shares to pursue larger acquisitions, helping fund CEO Sam Altman’s intention to channel trillions of dollars into AI infrastructure, according to people familiar with the company’s thinking.The company, now valued at about $500 billion, is expected to reach an annualised revenue run rate of approximately $20 billion by the end of the year, Reuters reported citing sources. However, despite booming sales, losses are also rising, the agency added.During a livestream on Tuesday, Altman acknowledged that going public was increasingly likely. “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.Founded as a nonprofit in 2015, OpenAI later created a capped-profit structure to ensure the nonprofit retained oversight and prioritised safe development of AI technology. This week, the business underwent another overhaul. A nonprofit, now known as the OpenAI Foundation, continues to hold control but now owns a 26% stake in OpenAI Group and holds a warrant for additional shares if certain performance milestones are met. The update gives the nonprofit entity financial stake in the company’s future success.A listing would deliver substantial returns to early backers, including SoftBank, Thrive Capital and Abu Dhabi’s MGX. Microsoft, which has invested $13 billion, now owns about 27% of the company, Reuters reported.The discussions come at a time when AI is dominating investor appetite in global markets. Earlier this year, AI cloud operator CoreWeave went public at a valuation of $23 billion and has since roughly tripled. On Wednesday, Nvidia became the first company to reach a market value of $5 trillion, underlining its position at the centre of the worldwide AI investment boom.
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