OpenAI's $1T Public Offering: Wagering on AGI Amidst Forecasted $40B Deficit

OpenAI, the company responsible for ChatGPT, is reportedly gearing up for an initial public offering (IPO) that could see its valuation soar to as much as $1 trillion, according to three sources with knowledge of the situation. If successful, this would be among the largest IPOs ever, potentially allowing OpenAI to secure at least $60 billion in funding—though some advisers believe the figure could be even higher—to support its expansive plans for AI infrastructure. The company may submit its filing to securities authorities as soon as the latter half of 2026, with hopes of going public by late 2026 or sometime in 2027, as reported by

.

This move toward an IPO comes after a significant reorganization that lessened OpenAI's dependence on

, its longstanding collaborator and provider of cloud services. Under the revised arrangement, both Microsoft and the OpenAI Foundation now each own just over 25% of the company, with the remaining shares held by other investors, including employees. While Microsoft still has the right to sell OpenAI’s business-focused tools, it no longer has exclusive rights over consumer offerings or cloud infrastructure. The agreement also requires OpenAI to spend $250 billion on Microsoft’s Azure cloud platform over five years and to pay Microsoft 20% of its revenue until it reaches "artificial general intelligence" (AGI), according to .

Despite being valued at $500 billion, OpenAI is facing considerable financial hurdles. The company’s annualized revenue is projected to hit $20 billion by the end of the year, but its losses are increasing as it ramps up investment in AI research and development. CEO Sam Altman has admitted that public funding is likely necessary, saying, "I think it's fair to say it is the most likely path for us, given the capital needs that we'll have." According to an

, OpenAI’s internal forecasts indicate it could experience peak negative cash flow exceeding $40 billion by 2028, with positive cash flow not anticipated until 2030.

Going public would give OpenAI greater access to capital and the ability to pursue major acquisitions, supporting Altman’s goal of investing trillions in AI infrastructure. Still, some experts caution that such a lofty valuation could lead to overheating in the AI sector. "An IPO is not our focus, so we could not possibly have set a date," an OpenAI representative stated, reiterating the company’s commitment to advancing AGI. The timing of the IPO coincides with a surge in AI investment, as leading tech firms like Google, Microsoft, and Amazon pour unprecedented resources into data centers and AI hardware.

Speculation about OpenAI’s potential IPO has already begun to ripple through the market, with some observers drawing comparisons to the valuations of industry giants such as Apple and Microsoft. The company’s recent restructuring and IPO ambitions highlight its determination to be at the forefront of the AI industry, even as it faces financial challenges and competition from companies like Anthropic and Google.