OpenAI is preparing for a potential initial public offering that could value the company at up to $1 trillion, with filings possibly in late 2026. CEO Sam Altman has indicated that going public is the most likely path due to massive capital needs. However, the company reported significant losses, estimated at $11.5 billion in its latest quarter.
OpenAI, the maker of ChatGPT, is exploring an IPO amid ambitious plans for AI infrastructure spending. On October 30, 2025, Reuters reported that sources familiar with the matter described preparations for an offering that could reach $1 trillion in valuation, with preliminary talks discussing raising $60 billion through share sales. This figure represents funds raised, not total company worth; selling that amount while retaining most shares private could push the overall valuation to $1 trillion or higher. CEO Sam Altman stated during a livestream, “going public is the most likely path for us, given the capital needs that we’ll have.”
The potential IPO follows a restructuring completed on October 28, 2025, which reduced OpenAI's dependence on Microsoft. Microsoft has invested $13 billion and now holds 27 percent of the company. Under the new structure, the nonprofit OpenAI Foundation controls the for-profit arm, holding a 26 percent stake with warrants for additional shares upon meeting milestones. OpenAI, founded as a nonprofit in 2015 and later adding a for-profit subsidiary, was last valued at around $500 billion in private markets.
Financial challenges persist despite growth. The company anticipates $20 billion in revenue by year-end, but losses are mounting. Microsoft's earnings for the quarter ended September 30, 2025, showed its share of OpenAI's losses cut Microsoft's net income by $3.1 billion. With a 27 percent stake, this implies OpenAI's quarterly loss reached about $11.5 billion—exceeding half its projected annual revenue.
An OpenAI spokesperson responded, “an IPO is not our focus, so we could not possibly have set a date,” emphasizing, “we are building a durable business and advancing our mission so everyone benefits from AGI.” CFO Sarah Friar has targeted 2027 for an IPO, though advisors see 2026 as feasible. A public listing could provide efficient capital access and facilitate acquisitions using stock, supporting Altman's vision of trillions in AI investments. Investors like Microsoft, SoftBank, Thrive Capital, and MGX stand to gain substantially if successful.