OpenAI Plans IPO With Potential Trillion Dollar Valuation

OpenAI is preparing for a potential initial public offering in the fourth quarter of 2026, with a projected valuation that could reach $1 trillion. To facilitate the transition, OpenAI is working with Goldman Sachs and Morgan Stanley to draft a prospectus. The company also intends to hire a chief communications officer to manage its public image ahead of the launch, though it has yet to select a candidate after interviewing multiple people.

Despite reaching $20 billion in revenue in 2025, the company faces substantial financial headwinds. OpenAI expects losses of $14 billion in 2026 and contends with intense competition from rivals Google and Anthropic.

Internal deliberations regarding the timeline persist. Chief Financial Officer Sarah Friar has reportedly suggested delaying the IPO until 2027 to ensure the company meets necessary reporting standards and manages its spending commitments.