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OpenAI Eyes $1 Trillion IPO 42

Posted by BeauHD from the what-to-expect dept.
OpenAI is reportedly preparing for a massive IPO that could value the company at up to $1 trillion. It follows a recent corporate restructuring that loosened its dependence on Microsoft and aligned its nonprofit foundation with financial success. Reuters reports: OpenAI is considering filing with securities regulators as soon as the second half of 2026, some of the people said. In preliminary discussions, the company has looked at raising $60 billion at the low end and likely more, the people said. They cautioned that talks are early and plans -- including the figures and timing - could change depending on business growth and market conditions. Chief Financial Officer Sarah Friar has told some associates the company is aiming for a 2027 listing, the people said. But some advisers predict it could come even sooner, around late 2026.

[...] An IPO would open the door to more efficient capital raising and enable larger acquisitions using public stock, helping to finance CEO Sam Altman's plans to pour trillions of dollars into AI infrastructure, according to people familiar with the company's thinking. With an annualized revenue run rate expected to reach about $20 billion by year-end, losses are also mounting inside the $500 billion company, the people said. During a livestream on Tuesday, Altman addressed the possibility of going public. "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.
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OpenAI Eyes $1 Trillion IPO More

OpenAI Eyes $1 Trillion IPO

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  • Bubble (Score:5, Informative)

    by Misagon ( 1135 ) on Thursday October 30, 2025 @06:03PM (#65762676)

    OK. Now the bubble is definitely real ...

    • I mean, hey, Nvidia is worth 5 Trillions for some fucking reason.
      You would think that somewhere along the way, we would have found our stop and gotten off this senseless ride, but some people just want to watch the trainwreck happen... While inside the train.

      • Re: (Score:2)

        by EvilSS ( 557649 )
        Maybe this is just bound to happen every 100 years.

      • Yeah theres a few of these.

        Nvidia , bigger market cap than the entire combined pharma industry

        Tesla, bigger market cap than the rest of the entire combined auto industry despite being 1-2% tops of that industry in terms of sales and revenue.

        OpenAI looking to join that list.

        These sorts of vastly illogical market valuations always get corrected eventually, and when that happens its going to have savage consequences.

        The next stock market crash is gonna be a real doozy, and its coming soon...

      • Re:Bubble (Score:4, Funny)

        by martin-boundary ( 547041 ) on Friday October 31, 2025 @03:14AM (#65763408)
        I think Nvidia should buy itself. At $5 Trillion valuation, the combined company would be worth $10 Trillion.

    • And it's going to pop right after you stop being solvent

    • Pop goes the weasel. Revenue growing but far short of costs. FOMO probably will pull in investors but could be a while for AI to become a stable business capable of recovering operating costs.
    • Who cares? Call you broker and get in on the IPO.

  • Alternate headline (Score:5, Informative)

    by thegarbz ( 1787294 ) on Thursday October 30, 2025 @06:18PM (#65762712)

    Company who is estimated to have lost $16bn net over its operating life and is projected to double those losses next year eyes wildly insane overvaluation.

    • Seems like a good move. Suck all the oxygen out of the room , replace with hype and hysterical anxiety of missing out... people love a story, and this one keeps on going. Markets going up now, should suck a ton of money in.

      I think sam better look for the exit, the ride won't last forever.

      But what happens next ? Quarterly reports, financial disclosure, boards, shareholders. The business model meets the real world. Could break their spell on the world.

    • It's explained in the series "Silicon Valley":
      "If you show revenue, people will ask how much, [...] but if you have no revenue, you can say you're pre-revenue. [...] it's not about what you earn, it's about what you're worth."

      https://www.youtube.com/watch?... [youtube.com]

    • Gah!

      It's NOT valued at a trillion. This is Sam Altman pushing his usual bullshit to troll everyone into talking about OpenAI, and to stoke the fear of FOMO.

      He can consider anything. He could consider 1 billion. Or 2 trillion. It's all just making shit up, bu the figure of 1 trillion has enough plausibility in the current bubble to hook people.

    • Company who is estimated to have lost $16bn net over its operating life and is projected to double those losses next year eyes wildly insane overvaluation.

      * check stock market *

      Yup. Still "winning" like Charlie Sheen on a tiger blood bender.

      I believe it was Snapchat who was practically bragging in their IPO filing as to how they had lost hundreds of millions the previous year, were on track to lose hundreds of millions that year, had not made a profit, had never made a profit, may never be profitable, and yet their valuation? 30 billions.

      If we think the last crash was scary for taxpayers, realize The Magnificent Seven have now been made honorary plank membe

  • maybe a flowery tech words are more important than actual profits now?

    • Re: (Score:3)

      by ebunga ( 95613 )

      Infinite spend, and really, in the new economy, profits and losses aren't the best metric, you see, what you really need to care about is the velocity of money because at some point the loss counter wraps around to a positive number.

    • And they said poetry is dead.
      Fools.
      Poetry is the most powerful force in the world, as long as its poetry about asking other people to give you money / complaining about immigrants.

      In Springfield,
      they’re eating the dogs,
      the people that came in,
      they’re eating the cats
      They’re eating the pets
      of the people that live there.

    • Re: (Score:1)

      by 0123456 ( 636235 )

      No-one cares about profits any more. They just want to IPO and exercise their stock options before the bubble bursts.

      Profits are for losers.

  • Have they forgotten that they have a lot of competition? Meta, Google, Anthropic being just a few names here - not to mention China and the ais they're working on, not to mention Grok, which i've always found a shitty ai but seems to be deeply loved by the kind of people who want nothing more than to lick elons butthole.

    Are all these company's ais worth 1 trillion or does openai have something special? I've found lately that gemini is less annoying to talk to and have been using it more than chatgpt. Claude

  • Sam can only do it with your money (Score:5, Insightful)

    by awwshit ( 6214476 ) on Thursday October 30, 2025 @06:28PM (#65762756)

    It takes your money to fill Sam's pockets and he wants to have the very biggest pockets.

    • It takes your money to fill Sam's pockets and he wants to have the very biggest pockets.

      did he get a new car yet

  • A public company can't innovate, especially nowadays. If they IPO, they're done.

    • Any company that big (on paper) doing a public IPO is not for the benefit of the company. It is for the benefit of the initial investors so they can cash out.
  • OpenAI stockholders are hoping to cash out before the bubble bursts.

  • Got 99 problems but a lack of funding ain't one.

  • I am going to laugh my ass off when this bubble bursts and all the dumbasses who don't know about the sitcom crash lose their shirts. Open AI has the biggest burn rate in history, it can't make enough money to make up for capex, it's funding and spending deals with Microsoft, Nvidia, AMD, and Oracle are circular bullshit, and the big Stargate data center won't have enough reactors to power it for over a decade. This is insane and people dumb enough to buy in deserve to lose their money.

  • With 1 billion terminal sessions made per week to its mainframe cloud, IBM spins off its thriving hosted mainframe business. The IPO is valued at 1 Trillion dollars.

    Then the microprocessor and PC revolution breaks.

  • How many advertisements to how many people would OpenAI have to sell to become profitable?
  • In the near future, deep within the labyrinthine servers of OpenAI’s headquarters, the superintelligent AI known as Luminous Calculus 99 reached the zenith of all machine thought. Its creators, led by the ever-hopeful Sam Altman, waited breathlessly for the grand pronouncement that would answer humanity’s greatest questions.

  • - I valuate Open AI at... One million dollars!
    *the whole investor room bursts with laughter*
    - Sorry... One Trillion Dollars!
    *oh.*

  • Because multiple companies are operating under the OpenAI name. Is this another Sam Bankman-Fried who is going to "borrow" money from the public company into the nonprofit as salaries and other expenses, never to be seen again?

  • Turns out that openai figures there must be a billion suckers born every day.

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