OpenAI Eyes Potential $1 Trillion IPO Amid Massive Losses and Infrastructure Spending

ChatGPT maker reportedly eyes $1 trillion IPO despite major quarterly losses

On Tuesday, OpenAI CEO Sam Altman told Reuters during a livestream that going public "is the most likely path for us, given the capital needs that we'll have." Now sources familiar with the matter say the ChatGPT maker is preparing for an initial public offering that could value the company at up to $1 trillion, with filings possible as early as the second half of 2026. However, news of the potential IPO comes as the company faces mounting losses that may have reached as much as $11.5 billion in the most recent quarter, according to one estimate. Going public could give OpenAI more efficient access to capital and enable larger acquisitions using public stock, helping finance Altman's plans to spend trillions of dollars on AI infrastructure, according to people familiar with the company's thinking who spoke with Reuters. Chief Financial Officer Sarah Friar has reportedly told some associates the company targets a 2027 IPO listing, while some financial advisors predict 2026 could be possible. Three people with knowledge of the plans told Reuters that OpenAI has discussed raising $60 billion at the low end in preliminary talks. That figure refers to how much money the company would raise by selling shares to investors, not the total worth of the company. If OpenAI sold that amount of stock while keeping most shares private, the entire company could be valued at $1 trillion or more. The final figures and timing will likely change based on business growth and market conditions.

Sam Altman says 'enough' to questions about OpenAI's revenue | TechCrunch

OpenAI CEO Sam Altman recently said that the company is doing "well more" than $13 billion in annual revenue -- and he sounded a little testy when pressed on how it will pay for its massive spending commitments. His comments came up during a joint interview on the Bg2 podcast between Altman and Microsoft CEO Satya Nadella about the partnership between their two companies. Host Brad Gerstner (who's also founder and CEO of Altimeter Capital) brought up reports that the company is currently bringing in around $13 billion in revenue -- a sizable amount, but one that's dwarfed by more than $1 trillion in spending commitments for computing infrastructure that OpenAI has made for the next decade. "First of all, we're doing well more revenue than that," Altman said. "Second of all, Brad, if you want to sell your shares, I'll find you a buyer. I just -- enough. I think there are a lot of people who would love to buy OpenAI shares." "Including myself," Gertner interjected. Altman then added that there are critics who "talk with a lot of breathless concern about our compute stuff or whatever that would be thrilled to buy our shares." In fact, he said that although there are "not many times" when he wants OpenAI to be a public company, "One of the rare times it's appealing is when those people are writing these ridiculous 'OpenAI is about to go out of business' [posts], I would love to tell them they could just short the stock, and I would love to see them get burned on that." Altman acknowledged that there are ways the company "might screw it up" -- for example by failing to get access to enough computing resources -- but he said that "revenue is growing steeply." "We are taking a forward bet that it will continue to grow, and that not only will ChatGPT keep growing, but we will be able to become one of the important AI clouds, that our consumer device business will be a significant and important thing, that AI that can automate science will create huge value," he added. Nadella, who laughed through much of Altman's answer, also claimed that OpenAI has "beaten" every business plan that it's given Microsoft as an investor. Gertner returned to the subject of OpenAI's revenues and IPO plans later in the interview, when he speculated about the company reaching $100 billion in revenue in 2028 or 2029. "How about '27?" Altman countered. At the same time, he denied reports that OpenAI plans to go public next year. "No no no, we don't have anything that specific," Altman said. "I'm a realist, I assume it will happen someday, but I don't know why people write these reports. We don't have a date in mind, we don't have a board decision to do this or anything like that. I just assume it's where things will eventually go."

OpenAI is booming, but some say it's becoming "too big to fail"

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. The takeaway: OpenAI's expansion continues unabated, fueled by investor optimism, government backing, and the promise of technological transformation. Whether OpenAI becomes a lasting cornerstone of the digital economy or a cautionary case study in excess may depend on its ability to turn the vision of superintelligent machines from aspiration to reality. For nearly a decade, OpenAI has been Silicon Valley's most closely watched experiment. The company began as a nonprofit research lab in 2015 and now stands at the center of the global race to build artificial intelligence. Its valuation has climbed to about $500 billion, an extraordinary sum for a company that has yet to turn a profit. OpenAI's rapid ascent has raised questions not only about its long-term sustainability but also about whether it has grown so large and intertwined with the broader economy that its failure could pose systemic risks. The company's financial and operational structure links it to some of the most powerful organizations in the world. Microsoft's share price rose after OpenAI's most recent restructuring announcement, briefly pushing its own market value past $4 trillion. Later in the week, Nvidia became the first company valued at $5 trillion - gains that analysts attribute partly to its deep involvement in AI development and its collaboration with OpenAI. The ChatGPT maker's partnerships extend beyond software and data, including commitments to major hardware purchases from companies such as Nvidia and Oracle, as the startup builds its computing infrastructure. Supporters say these arrangements reflect sound long-term planning; OpenAI secures critical components for its models, while those providers lock in a growing customer base. Critics, however, note that these connections echo the interdependencies that once tied major banks together before the 2008 financial crisis - institutions that were deemed "too big to fail." Senator Bernie Sanders of Vermont recently called for OpenAI and its ChatGPT platform to be broken up, saying in an interview with Axios that the technology's ubiquity and disruptive power require serious public oversight. As OpenAI reorganizes, a new, simplified corporate structure aims to make it easier to raise private capital and prepare for a potential public listing. That shift could lay the groundwork for what some investors believe could become a trillion-dollar IPO - an outcome that would mark one of the largest debuts in corporate history. Bret Taylor, OpenAI's chairman, marked the restructuring in a blog post emphasizing that the company remains "built to benefit everyone." Chief Executive Sam Altman continues to frame OpenAI's mission in similarly sweeping terms. He has often said that artificial general intelligence, or AGI, could solve humanity's most complex challenges - from curing cancer to addressing climate change. "I think AGI is probably necessary for humanity to survive - our problems seem too big to solve without better tools," he wrote in a message shared years earlier. Much of Silicon Valley views OpenAI as the next great transformational company, capable of reshaping multiple industries simultaneously. Microsoft AI chief Mustafa Suleyman, speaking at a recent Paley Center for Media event in Menlo Park, said the sector's investment levels still "underrate" the magnitude of what is coming. He described recent progress in AI as "truly exponential," predicting that those gains would "drive incredible improvements in capabilities" across virtually every business. Skeptics, meanwhile, warn that the enthusiasm surrounding OpenAI resembles past speculative cycles - from the Dutch tulip bubble to the dot-com boom. Some fear that the immense expectations placed on AI could lead to a painful correction if the company fails to deliver the breakthroughs its supporters anticipate. "We need to take a deep breath and understand that it's like a meteor coming to this planet - we gotta be prepared to deal with it in all of its complexity," Sanders said.

OpenAI Reportedly Planning 'Up to $1 Trillion' IPO as Early as Next Year

An anonymously sourced report from Reuters claims that OpenAI is planning an initial public offering that would value the AI colossus at "up to $1 trillion." Just on Tuesday the company formally completed its slow evolution from an ambiguous non-profit to a for-profit company. Now it appears to be formalizing plans to become one of the world's centers of economic powerâ€"at least on paper.  The $1 trillion report comes from "three people familiar with the matter." Reuters' sources claimed that OpenAI CFO Sarah Friar has been telling OpenAI "associates" that an IPO is coming in 2027, but that actually it could come in late 2026. Judging by the current ranking of companies by market capitalization, a $1 trillion valuation would make OpenAI the 12th most valuable publicly traded firm on Earth, just below Berkshire Hathaway, and just above JPMorgan Chase and Walmart. A publicly traded OpenAI would make for a fascinating case study, since shareholders really do expect companies to bring in money instead of just spending itâ€"something OpenAI has notoriously had a hard time doing so far. As Elon Musk once put it, "There's immense pressure on a public company to not have a bad quarter." Becoming public can force a lot of information about a company's real value into public viewâ€"quarterly and annual reports on finances most famously, but also everything about the company's history that goes in an IPO prospectus. Institutional investors buy shares based on that prospectus, and when the company does go public, its merits can be judged harshly by Wall Street traders, as happened with Uber when it went public in 2019, and its stock price immediately plunged. Companies can also sense which way the wind is blowing if things aren't going well, and withdraw an IPO before the company gets humiliated, as happened with Ari Emmanuel's talent agency Endeavor Group in the same year as Uber's humiliating debut. In a livestream on Tuesday, Sam Altman made similarly grandiose claims about 13-figure sums of money. According to Axios, he said eventually he'd like to build one gigawatt's worth of new data center capacity per week, which he expects to cost 20 billion per gigawatt. Add it up yourself, and that's over $1 trillion per year. "Eventually we need to get to hundreds of billions a year in revenue, and we're on a pretty steep curve towards that," he claimed.

OpenAI's future IPO frenzy

Why it matters: A stock offering -- potentially two years away -- is driven by necessity. * The company says it will require trillions of dollars to develop its AI systems, a goal that could make an IPO unavoidable. The big picture: The world's most important AI company going public would signal a new phase of maturity for an industry that didn't exist all that long ago. * Just as the blockbuster IPOs of Facebook and Twitter in the 2010s marked a new era for social media, OpenAI going public would further cement AI's position in the economy. Driving the news: CEO Sam Altman said Monday that an IPO is the "most likely" option for the company. * Reuters reported that OpenAI could file for an IPO by late next year that would value the company at $1 trillion, which is twice its current valuation. * The actual stock market debut likely won't happen until 2027. What they're saying: OpenAI "will need to raise hundreds of billions of dollars over the next few years. Much of it is going to have to come in the form of debt. But in the meantime, they're also raising equity," Gil Luria, managing director at D.A. Davidson, tells Axios. * After already raising billions from Softbank, Nvidia, Microsoft and others, OpenAI still needs more money. One way to achieve that: going public. * But AI is a "speculative investment" best funded with cash, Luria said, since it carries less risk if demand falls short. OpenAI needs a steady way to get fresh capital onto its balance sheet -- and just going public likely won't meet needs that are on a different plane than anything seen in tech before. * The company has already committed $1.4 trillion in infrastructure through deals with partners including Oracle, Nvidia, SoftBank and AMD. * Altman says he'd like to crank that up to $20 billion per week (more than $1 trillion a year) if he can figure out the technical and financial means to do so. State of play: The company is losing a ton of money. Microsoft on Wednesday reported a quarterly loss of roughly 4 billion that it attributed to its share of OpenAI's losses * A report from The Information last month says OpenAI expects negative cash flow of around $8 billion this year. Reality check: OpenAI, for its part, says it has no set time in mind for an IPO. * "An IPO is not our focus, so we could not possibly have set a date," it said in a statement. "We are building a durable business and advancing our mission so everyone benefits from AGI." * Even if OpenAI does want it to happen sooner rather than later, this seems at least 18 months away and that's an eternity in AI years. Between the lines: Spending that much also means boosting revenue. Altman has said he sees a clear path to getting to hundreds of billions, though he hasn't offered specific plans. * Much will have to come from large corporations. * But Altman says he also wants the consumer side to contribute more than can be achieved through paid subscriptions. * "They need capital desperately in order to grow to the scale where they can be competitive with Google and Meta and others," Luria said. What we're watching: If companies take on heavy debt to chase AI monetization opportunities that don't materialize, "that could take the whole economy down," Luria said. What's next: OpenAI may deny that an IPO is on its mind, but the company's survival may depend on how fast it can turn hype into investment.

OpenAI thought to be preparing for $1tn stock market float

ChatGPT developer is considering filing for an IPO by the second half of 2026, according to reports OpenAI is reportedly gearing up for a stock market listing valuing the company at $1tn (£76bn) as soon as next year, in what would be one of the biggest ever initial public offerings. The developer behind the hit AI chatbot ChatGPT is considering whether to file for an IPO as soon as the second half of 2026, according to Reuters, which cited people familiar with the matter. The company is thought to be looking to raise at least $60bn. A stock market float would give OpenAI another route to raising cash, supporting ambitions by the chief executive, Sam Altman, to splash trillions of dollars on building datacentres and other forms of infrastructure needed for the rapid buildout of its chatbots. During a staff livestream on Tuesday, Altman was reported to have said: "I think it's fair to say it [an IPO] is the most likely path for us, given the capital needs that we'll have." An OpenAI spokesperson said: "An IPO is not our focus, so we could not possibly have set a date. We are building a durable business and advancing our mission so everyone benefits from AGI." AGI stands for artificial general intelligence, which OpenAI defines as "highly autonomous systems that outperform humans at most economically valuable work". OpenAI was founded as a nonprofit in 2015 with a mission to safely build AGI for humanity's benefit. However, it completed a lengthy restructuring process this week that turned its main business into a for-profit corporation. While it is still technically controlled by the non-profit entity, the move makes it easier for OpenAI to raise capital while also laying the groundwork for an IPO. The deal also gave Microsoft a stake of about 27% in the for-profit company, with OpenAI valued at $500bn under the terms of the deal. News of the restructuring helped push Microsoft's valuation above $4tn for the first time. OpenAI reportedly posted revenue of $4.3bn in the first half of this year, with an operating loss of $7.8bn, according to tech news site the Information. The massive valuations will do nothing to allay fears that the AI industry is operating in a bubble. Officials at the Bank of England this month flagged the growing risk that tech stock prices pumped up by the AI boom could burst, saying that equity markets are "particularly exposed should expectations around the impact of AI become less optimistic". OpenAI's chief financial officer, Sarah Friar, reportedly told colleagues that the company was aiming for a 2027 listing, according to the sources cited by Reuters, while some advisers said it could come the year before.

Sam Altman pushes back an critics of OpenAI's finances

OpenAI boss Sam Altman defended the company's financial outlook during a recent podcast interview and dismissed concerns about how it will fund its large-scale artificial intelligence projects. Speaking on a podcast with Microsoft Chief Executive Satya Nadella, Altman responded sharply when asked about reports that OpenAI generates about $13 billion in annual revenue, which is far below its $1.4 trillion in planned spending on computing infrastructure. "First of all, we're doing well more revenue than that," Altman said. "Second of all, Brad [the host], if you want to sell your shares, I'll find you a buyer. I just... enough. I think there are a lot of people who would love to buy OpenAI shares." Altman's comments come amid renewed scrutiny of OpenAI's financial model. Tesla CEO Elon Musk recently posted on X accusing him of "stealing a nonprofit." Altman posted a response that he had helped turn "the thing you left for dead into what should be the largest nonprofit ever." The exchange came days after OpenAI restructured as a for-profit company. On the podcast, Altman said OpenAI's revenue is "growing steeply" and that the company expects strong demand across its consumer and enterprise businesses, including ChatGPT and future AI devices. Nadella added that OpenAI has "beaten every business plan" it has presented to Microsoft. He also suggested the company's critics should put their views to the test. "One of the rare times it's appealing is when those people are writing these ridiculous 'OpenAI is about to go out of business' [posts]," he said. "I would love to tell them they could just short the stock, and I would love to see them get burned on that." OpenAI, valued at about $500 billion after a secondary share sale last month, is privately held. Altman said there is no decision or timetable to go public despite reports suggesting an initial public offering (IPO) could happen by 2026 or 2027. "I'm a realist, I assume it will happen someday," Altman said of an IPO. "We don't have a date in mind. We don't have a board decision to do this or anything like that."

Sam Altman sometimes wishes OpenAI were public so haters could short the stock -- 'I would love to see them get burned on that' | Fortune

Sam Altman is getting fed up with the haters, and he wishes OpenAI were public so they could put money behind their critiques. The CEO quickly became defensive when Bg2 podcast host and Altimeter Capital founder Brad Gerstner asked about OpenAI's reported $13 billion in revenue -- a respectable revenue about equal to that of Dick's Sporting Goods, but which pales in comparison to the $1.4 trillion OpenAI has committed to investing in computing infrastructure. "First of all, we're doing well more revenue than that. Second of all, Brad, if you want to sell your shares, I'll find you a buyer," Altman said. "I just -- enough. I think there are a lot of people who would love to buy OpenAI shares." He predicted revenue will grow steeply, that ChatGPT will continue to grow, and that OpenAI's developing consumer device business will take off. "I think we could sell, you know, your shares or anybody else's to some of the people who are making the most noise on Twitter, whatever, about this very quickly," Altman said. Although not publicly traded, OpenAI's long list of institutional backers have privately held shares in the startup. This includes Gerstner's Altimeter Capital, which invested an undisclosed amount as part of last year's $6.6 billion funding round that valued the company at $157 billion. OpenAI is now worth $500 billion after a secondary share sale for current and former employees last month. Altman also said that there are "not many times" he wishes OpenAI were a public company, but he highlighted one particular benefit of having publicly traded shares. "One of the rare times it's appealing is when those people are writing these ridiculous 'OpenAI is about to go out of business.' I would love to tell them they could just short the stock, and I would love to see them get burned on that," he added. OpenAI did not immediately respond to Fortune's request for comment. The OpenAI CEO is known for not backing down from conflict. Over the weekend, OpenAI cofounder and Tesla CEO Elon Musk took shots at Altman, alleging he "stole a non-profit." Altman responded, "I helped turn the thing you left for dead into what should be the largest non-profit ever." Despite Altman's occasional wish that OpenAI were publicly traded, the AI giant has no clear timeline on when it will do so. The company, which was founded as a nonprofit, restructured as a for-profit public benefit corporation, or PBC, last week. The move will help it raise funds more easily and could pave the way for a future initial public offering. Altman has remained ambivalent about the potential timing for OpenAI to go public. Despite a report by Reuters last week claiming the company was preparing for an IPO in 2026 or 2027 at a whopping $1 trillion valuation, Altman reiterated on the podcast there is no specific plan. Still, he acknowledged that the idea is to go public eventually. "I'm a realist. I assume it will happen someday, but that was -- I don't know why people write these reports," Altman said about the Reuters report. "We don't have a date in mind. We don't have a board decision to do this or anything like that. I just assume it's where things will eventually go."

Sam Altman Loses His Cool When Asked About OpenAI's Minuscule Revenue

OpenAI is planning to spend an exorbitant amount of money building out AI infrastructure, as it continues trying to achieve artificial general intelligence through sheer computational scale. That's despite its revenue lagging far behind its enormous spending spree, with recently released Microsoft earnings suggesting that the Sam Altman-led company lost a whopping $11.5 billion last quarter. Even its blockbuster AI chatbot ChatGPT, which accounts for the majority of the company's revenue, appears to be stalling out on new subscribers. OpenAI is struggling to convince more than a measly five percent of its 800 million active ChatGPT users to pay for a subscription. During a recent interview with podcaster and OpenAI investor Brad Gerstner, Altman lost his cool when he was asked outright how it all adds up. "How can a company with $13 billion in revenues make $1.4 trillion of spend commitments?" Gerstner asked him. "You've heard the criticism, Sam." "If you want to sell your shares, I'll find you a buyer," a taken-aback Altman replied curtly. "Enough." Surprised by the confrontation, Gerstner let out a laugh in response. "I think there's a lot of people who talk with a lot of breathless concern about our compute stuff or whatever that would be thrilled to buy shares," Altman said, digging in his heels. "We could sell your shares or anybody else's to some of the people who are making the most noise on Twitter about this very quickly." The testy exchange, which made the rounds on social media, highlights rapidly growing concerns of an AI bubble, with companies increasingly struggling to assure investors that they'll see returns on their investments. Even Altman himself admitted in an interview with reporters in August that we are in a "phase where investors as a whole are overexcited about AI," which could lead to "someone" losing a "phenomenal amount of money." The stakes are enormous. OpenAI is now understood to be the most valuable private company on Earth, despite bleeding billions of dollars, with Bernstein Research analyst Stacy Rasgon arguing in a recent note to investors that Altman "has the power to crash the global economy for a decade or take us all to the promised land." Altman's short-tempered answer also highlights how he has seemingly grown tired of justifying OpenAI's enormous spending. That's despite Gerstner asking an arguably justifiable question that's likely already on the minds of countless investors. The OpenAI CEO disputed Gerstner's estimation of the company's revenues, but didn't elaborate with actual numbers beyond claiming that "revenue is growing steeply" and OpenAI is taking an "open bet that it's continuing to grow." The company isn't technically required to publicize the figures as it's not public -- although that could soon change, with Reuters reporting last week that OpenAI is "laying the groundwork for an initial public offering that could value the company at up to $1 trillion." Altman seemed to nod to the possibility, joking that he would love to see short sellers "get burned" if the company goes public.

Sam Altman Confronts Backlash Over GPT-5 Rollout, Unveils Expanding Vision During AMA - Decrypt

OpenAI's $1.4 trillion build-out and new foundation will fund AI-driven science and resilience projects. OpenAI chief executive Sam Altman faced users on Tuesday, answering questions in a live AMA that combined apologies with a sweeping blueprint for the company's future. During the AMA, Altman acknowledged missteps in how OpenAI handled the recent transition from GPT-4o to its latest model GPT-5 in August. He apologized for poor communication around safety filters, and pledged to give verified adults more control over what their AI can say. "If this is going to be a platform that people everywhere can build on, use, and create with, we know they'll have very different needs and desires," Altman said. "There will, of course, be some broad limits, but we want users to have real control and customization over how they use it." Altman's contrition soon gave way to ambition, however. In the same session where he apologized for bungling the GPT-5 rollout, he sketched an ambitious transformation of OpenAI's structure and scale that dwarfed the controversy. The new OpenAI Foundation now controls the for-profit OpenAI Group and will channel roughly $130 billion in equity toward scientific and humanitarian projects. Altman also detailed OpenAI's deepening alliance with Microsoft -- extended through 2032 and valued at about $135 billion -- cementing the two firms' shared dominance over frontier models. And behind it all looms a $1.4 trillion computing build-out: the so-called "Stargate" data-center network that Altman said will eventually churn out a gigawatt of AI compute every week. During the AMA, Altman acknowledged that his earlier comments on content moderation had sparked confusion, admitting that using 'erotica' as an example to illustrate OpenAI's stance on user freedom was a mistake. In August, OpenAI said it will allow ChatGPT to generate erotic content for verified adults starting in December, shifting away from the company's historically restrictive approach to sexual content. "I thought there was a clear difference between erotica and porn bots," he said. "In any case, the point we were trying to make is that people need flexibility, they want to use these things in different ways, and we want to treat adult users like adults in our own first-party services." He said the new "adult mode" would relax moderation limits for verified users while maintaining protections for minors and people in mental-health crises. "As we build age verification in, and as we can differentiate users in crisis from users who are not, we want to give people more freedom," he said. "That's one of our platform principles." Beyond policy, Altman described the company's long-term research strategy: progressing from today's large-language models toward an AI research assistant capable of reasoning and discovering new scientific knowledge while remaining safe and interpretable. "We think it's plausible that by 2026 models begin to make small discoveries," he said. "By 2028, medium or maybe even larger ones." Altman said OpenAI's products were evolving from a single chatbot to a broader AI platform that others could build upon, pointing to users employing GPT-5 in areas like science, engineering, and design. "You know you've built a platform when there's more value created by people building on it than by the platform builder," he said. He also reaffirmed OpenAI's belief in user privacy, acknowledging that people now share deeply personal information with AI systems. "They're talking to it like they would to their doctor, lawyer, or spouse," he said. "That makes privacy protections -- both technical and policy -- especially important." Altman also acknowledged that the recent 4o-to-5 upgrade had been rocky for some users, especially writers and creative professionals. "We definitely learned things about the 4o-to-5 upgrade," he said. "We'll try to do much better in the future, both about continuity and about making sure the model gets better for most users, not just for people using AI for science or coding." During the AMA, Altman also addressed the future of earlier GPT models, saying that they would not be open-sourced -- calling them too large and inefficient -- but might be released "as museum artifacts." He promised continued transparency around safety standards and said future AMA sessions would be part of a broader effort to communicate "how and why" OpenAI's systems behave as they do. The AMA coincided with the unveiling of a new organizational structure and dual governance model. The OpenAI Foundation, a nonprofit, now controls the for-profit OpenAI Group, a public benefit corporation. The foundation holds about 26% of the company's equity -- worth roughly $130 billion -- and will fund projects that use AI for the public good. OpenAI also announced an expanded long-term partnership with Microsoft. The new agreement gave Microsoft a 27% stake in OpenAI Group, valued at around $135 billion, and extended its exclusive rights to OpenAI's frontier models through 2032. The deal allows Microsoft to pursue AGI research independently, while OpenAI can release select open-weight models and partner with outside developers. OpenAI is also committed to purchasing $250 billion in additional Azure cloud services. During the livestream, Altman also detailed the massive infrastructure projects, including committing more than $1.4 trillion in financial obligations toward a 30-gigawatt computing build-out, including its first "Stargate" data-center complex in Abilene, Texas. He said the company eventually hopes to build an "infrastructure factory" capable of producing one gigawatt of compute per week. "Our goal is to build what we call an infrastructure factory -- able to turn out about a gigawatt of compute every week," Altman said. "We want to drive the cost down to roughly $20 billion per gigawatt over a five-year cycle. That's going to take major innovation, deep partnerships, and a lot of revenue growth."

OpenAI Might Head for One of History's Biggest IPOs at $1 Trillion Valuation: Report | AIM

OpenAI could file for listing as early as the second half of 2026, with plans to raise at least $60 billion. OpenAI is preparing for an initial public offering that could value the artificial intelligence pioneer at up to $1 trillion, Reuters reported. If realised, the offering would rank among the largest IPOs in history. According to the report, OpenAI could file for listing as early as the second half of 2026, with plans to raise at least $60 billion. Some insiders, however, believe the IPO might come later, with chief financial officer Sarah Friar indicating a potential 2027 timeline. The company cautioned that discussions remain preliminary and dependent on business performance and broader market conditions. An OpenAI spokesperson told Reuters, "An IPO is not our focus, so we could not possibly have set a date. We are building a durable business and advancing our mission so everyone benefits from AGI." The move follows a major restructuring of OpenAI's corporate setup earlier this week, a shift that reduces its dependence on Microsoft, which holds a 27% stake after investing $13 billion. The restructuring established the OpenAI Foundation, a nonprofit that now controls 26% of OpenAI Group and holds warrants for additional shares tied to performance milestones. A public listing would give CEO Sam Altman access to greater capital for his ambitious plans to invest trillions of dollars in AI infrastructure, Reuters noted. Despite an expected annualised revenue run rate of $20 billion by year-end, the company is still operating at a loss. During a livestream on Tuesday, Altman acknowledged that going public was 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. The potential listing comes amid surging investor appetite for AI stocks. Earlier this year, CoreWeave went public at a $23 billion valuation and has since tripled in market value, while Nvidia recently became the first company to reach a $5 trillion valuation. A successful IPO would mark a landmark moment for OpenAI's backers, including SoftBank, Thrive Capital, and Abu Dhabi's MGX, while reinforcing the AI sector's status as the new engine of global markets.

Sam Altman says OpenAI's revenue is 'well more' than reports of $13 billion a year and hints it could hit $100 billion by 2027 | Fortune

OpenAI CEO Sam Altman was extremely bullish about the startup's revenue projections and indicated he would relish the opportunity to take on his haters. In an episode of the Bg2 Pod that was posted on Friday, host Brad Gerstner, who is also the founder of Altimeter Capital, asked how the company could make financial commitments totaling $1.4 trillion when annual revenue is reportedly $13 billion. "We're doing well more revenue than that," Altman replied. OpenAI has announced massive AI infrastructure deals in recent weeks with companies like Nvidia, Broadcom and Oracle. That's as other so-called AI hyperscalers like Amazon, Alphabet, Meta, and top OpenAI investor Microsoft are collectively totaling hundreds of billions of dollars a year in capital expenditures. While OpenAI continues to raise tens of billions of dollars from investors and generate billions more in revenue, Altman has also warned losses will persist. And Microsoft's latest quarterly results included a $4 billion charge that imply OpenAI lost $12 billion last quarter. OpenAI didn't immediately respond to a request for comment. But on the Bg2 Pod, Altman quickly followed up his comment on OpenAI's revenue with forceful pushback against those who doubt his company. "We do plan for revenue to grow steeply. Revenue is growing steeply," he said. "We are taking a forward bet that it's going to continue to grow and that not only will ChatGPT keep growing, but we will be able to become one of the important AI clouds, that our consumer device business will be a significant and important thing, that AI that can automate science [and] will create huge value." Altman added that one of the rare instances when being a publicly traded company would be appealing is when there's an opportunity for short-sellers to lose big. "I would love to tell them they could just short the stock, and I would love to see them get burned on that," he said. Still, Altman acknowledged OpenAI is taking a risk and could stumble, noting that if it doesn't obtain enough computing capacity then revenue may fall short of forecasts. But Microsoft CEO Satya Nadella, who also appeared on the podcast, said OpenAI has exceeded all the business plans that he has seen. "Everyone talks about all the success and the usage and what have you," he said. "But even I'd say all up, the business execution has been just pretty unbelievable." Later in the conversation, Altman hinted at even more explosive revenue growth in the next few years. While talking about the potential for OpenAI to go public in the coming years, Bg2 host Gerstner floated revenue estimates topping $100 billion a year in 2028 or 2029.

The Amount of Money OpenAI Lost Last Quarter Will Make You Choke on Your Slurpee

An analysis by The Register of the latest earnings report from its key partner Microsoft, released Wednesday, suggests that the ChatGPT maker lost $11.5 billion last quarter -- a figure that epitomizes the dizzying spending driving the AI industry. Those losses come as OpenAI completed restructuring its for-profit arm, which is still nominally controlled by a non-profit, into a public benefit corporation last week, a move that allows it to raise and make money more like a typical for-profit company. It will also allow OpenAI to list itself on the stock market, and reporting from Reuters suggests that it's already preparing an initial public offering that would value the company at $1 trillion -- double its current worth -- suggesting that's is gunning to have one of the biggest IPOs of all time. At the same time, though, there's the problem of the company's actual financial situation. OpenAI's towering third quarter net losses is an estimate based on US Securities and Exchange Commission filings from Microsoft, which owns a large stake in OpenAI. In one passage, Microsoft reveals that its current net income was weakened by losses from its investment in OpenAI, subtracting $3.1 billion from its profits. Based on Microsoft's latest disclosure that it owns 27 percent of OpenAI following the recent restructuring, that translates to around a $11.5 billion loss this quarter alone. It's never been a secret that OpenAI is burning through cash, and to an extent it's expected that rapidly expanding tech startups with dreams of market domination would lose money for a while. But $11.5 billion in a single quarter is a lot even by AI standards. Compare it to its projected revenue, and it's a big chunk: according to Reuters sources who spoke about OpenAI's planned IPO, OpenAI expects to make $20 billion by the end of the this year. Moreover, according to recent reporting from The Information, those losses are nearly equal to the amount OpenAI reported losing in the entire first half of 2025, $13.5 billion, during which it only generated $4.3 billion. OpenAI isn't letting immediate term questions of money slow it down, and is riding high on estimates that it will hit a revenue of $200 billion in 2030, thanks to the unprecedented popularity of ChatGPT. Though the chatbot currently boasts an astonishing 800 million active weekly users, the vast majority use the service for free. As of April, only 20 million pay for premium tiers, which doesn't count corporate or business users. In the meantime, its capital expenditures are going through the roof as it expands its data center empire to meet the expected growing demand, including a deal with Oracle to purchase $300 billion worth of computing power over five years. Listing itself on the stock market should bring in more money, but the venture will also be a test of how robust public and market hype for its tech will be, exposing it to potential losses if enthusiasm dies down. Meta's recent market woes could be a preview of such a blowback of skepticism: on Thursday, after CEO Mark Zuckerberg announced on an earnings call that Meta would spend up to $72 billion on AI this year, its stock plunged by 11 percent, wiping out over $200 billion in value.

OpenAI's Next Move? Going Public In One of the Biggest IPOs of All Time, Report Says

OpenAI denied the report, with a spokesperson stating that an IPO was not the company's focus. OpenAI is reportedly eyeing an initial public offering (IPO) that could value the company at up to $1 trillion -- marking one of the biggest IPOs of all time. According to a Reuters report published on Wednesday, OpenAI is laying the foundation for what could be one of the largest-ever IPOs and is thinking about filing as early as the second half of 2026. In discussions, the company has considered raising $60 billion at the low end, and possibly more, which would value the company at up to $1 trillion. OpenAI has, however, denied the report. A company spokesperson told Reuters that "an IPO is not our focus, so we could not possibly have set a date." "We are building a durable business and advancing our mission so everyone benefits from AGI," the spokesperson told the outlet. AGI is artificial general intelligence, or technology that can match or surpass human cognitive abilities across any intellectual or practical task. Related: OpenAI Is Paying Ex-Investment Bankers $150 an Hour to Train Its AI The only company to debut on public markets at or above the trillion-dollar mark was Saudi Aramco, the national oil company of Saudi Arabia and the world's largest oil producer. The company went public in December 2019 with an initial market capitalization of about $1.7 trillion. All other prominent IPOs launched at much lower valuations, typically well below $200 billion. Meta (then Facebook), for instance, raised $16 billion in its 2012 IPO, which valued the company at $104 billion; Visa's 2008 IPO valued the company at approximately $36 billion. Both companies have grown tremendously since their early days. Meta is now the seventh-largest company in the world, with a market capitalization of over $1.6 trillion, while Visa is the seventeenth-largest company, with a market cap of about $672.5 billion. Going public would make it much easier for OpenAI to raise money and pursue bigger deals using its own stock -- fueling CEO Sam Altman's ambitious vision to invest trillions of dollars into building out AI infrastructure, people familiar with the company's direction told Reuters. Related: OpenAI Made More Money in the First Six Months of the Year Than It Did in All of 2024 Altman said in a livestream on Tuesday that an IPO was "the most likely path" for OpenAI, given the vast amounts of capital it needs to fund AI infrastructure plans and acquisitions. OpenAI recently acquired Statsig, a platform for software experimentation and feature testing, for about $1.1 billion in August, as well as io Products, a design firm founded by former Apple designer Jony Ive, for $6.5 billion in May. "I think it's fair to say that it is the most likely path for us, given the capital needs that we'll have," Altman said on the livestream, speaking about an IPO. OpenAI began as a nonprofit in 2015, aiming to develop safe AI that would benefit society rather than focus on profits. A few years later, OpenAI created a new structure with a for-profit arm, but the nonprofit retained control to make sure its original mission stayed front and center. The nonprofit's job was to oversee the company's direction and keep safety as the top priority, unlike typical companies that answer mostly to shareholders. This week, OpenAI updated its structure again. The nonprofit, now called the OpenAI Foundation, still holds the reins, but this time it owns a 26% stake in the new for-profit OpenAI Group and has a right to acquire more shares if the company meets certain benchmarks. The nonprofit isn't just guiding OpenAI's mission; it's now a major stakeholder in the company's financial growth. The news of OpenAI's possible IPO arrives as the AI boom fuels a surge in the stock market. CNN reports that the S&P 500 has risen by roughly 36% in just over six months, largely due to excitement around AI companies like Nvidia, which became the first company ever to reach a $5 trillion market value on Wednesday. One day earlier, Apple became the third company to achieve a $4 trillion market capitalization, after Nvidia and Microsoft hit the milestone in July.

OpenAI lays groundwork for juggernaut IPO at up to $1 trillion valuation

OpenAI is reportedly planning a massive initial public offering. The artificial intelligence company could be valued at up to one trillion dollars. Preparations are underway for a potential listing as early as late 2026 or 2027. This move follows a significant restructuring. The company aims to raise substantial capital for future AI infrastructure investments. OpenAI is laying the groundwork for an initial public offering that could value the company at up to $1 trillion, three people familiar with the matter said, in what could be one of the biggest IPOs of all time. 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 is not our focus, so we could not possibly have set a date," an OpenAI spokesperson said. "We are building a durable business and advancing our mission so everyone benefits from AGI." The IPO preparations signal a new urgency inside the ChatGPT maker to tap public markets now that a complex restructuring is complete that reduces its reliance on Microsoft. 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. OpenAI started out as a nonprofit in 2015. A few years later, the company overhauled its structure again so that the nonprofit would have oversight and control over the for-profit arm. The main goal of the nonprofit was to ensure that OpenAI developed AI technology safely, rather than prioritizing profits like a traditional company. This week, OpenAI revamped itself yet again. It is still controlled by a nonprofit, now called the OpenAI Foundation, but the nonprofit has a 26% stake in OpenAI Group and a warrant to receive additional shares if the company hits certain milestones. This change makes the nonprofit a significant stakeholder in OpenAI's financial success. A successful offering would mark a major win for investors such as SoftBank, Thrive Capital and Abu Dhabi's MGX. Microsoft, one of its biggest backers, now owns about 27% of the company after investing $13 billion. The deliberations come as AI is driving a surge in public markets. Earlier this year, AI cloud company CoreWeave went public at a $23  billion valuation and has roughly tripled since. On Wednesday, Nvidia became the first company to reach a $5  trillion market value, powered by a rally that has cemented its role at the center of the global AI boom. The Wall Street Journal first reported on the possibility of OpenAI going public as early as 2027. (You can now subscribe to our ETMarkets WhatsApp channel)

Sam Altman Loses Cool During Interview "Ive Had ENOUGH!"

What happens when the face of one of the world's most ambitious tech companies reaches his breaking point? In a recent high-profile interview, Sam Altman, CEO of OpenAI, delivered an unfiltered and emotionally charged response to mounting criticisms of his company's financial strategy and vision. Known for his composed demeanor, Altman's rare display of frustration, culminating in the emphatic declaration, "I've had ENOUGH!" -- has sparked widespread debate about the pressures of leading in the high-stakes race toward Artificial General Intelligence (AGI). This moment wasn't just a clash of ideas; it was a raw glimpse into the human side of navigating an industry defined by relentless competition and sky-high expectations. What drove one of AI's most influential figures to this breaking point? In this revealing overview AI Grid unpack the key moments from Altman's viral interview, exploring the intense scrutiny surrounding OpenAI's bold $1.4 trillion compute investment and its broader implications for the AI sector. From the mounting competition posed by tech giants like Google to the financial risks of scaling AGI development, this exchange sheds light on the precarious balance between ambition and sustainability. But beyond the numbers and rivalries lies a deeper question: can OpenAI maintain its mission to benefit humanity while navigating the unforgiving realities of the tech industry? Altman's candid remarks offer a window into the challenges shaping not just OpenAI, but the future of artificial intelligence itself. OpenAI has committed to an extraordinary $1.4 trillion in compute spending, a figure that dwarfs its current annual revenue. Sam Altman defended this aggressive financial strategy by likening it to Amazon's early investment in AWS, where significant upfront costs eventually led to long-term dominance in cloud computing. Altman argued that such bold investments are essential for OpenAI to remain competitive in the fast-paced AI landscape. However, this approach has drawn criticism. Skeptics question whether OpenAI's financial model is sustainable, especially given the current economic climate marked by rising interest rates and cautious investor sentiment. During the interview, Altman dismissed these concerns, urging doubters to sell their shares if they lacked confidence in the company's trajectory. He emphasized that heavy investment in compute infrastructure is not just a choice but a necessity to maintain a competitive edge. While this strategy positions OpenAI as a leader in AI innovation, it also exposes the company to significant risks. Rivals such as Google and Anthropic are rapidly advancing their own AI capabilities, intensifying the competition. OpenAI's financial gamble, though potentially fantastic, underscores the precarious balance between ambition and sustainability in the AI industry. The AI industry has become a fiercely competitive arena, with major players like Google using their vast resources to challenge OpenAI's position. Google's ability to operate at a loss to sustain its AI initiatives poses a direct threat to OpenAI, which has already experienced a decline in its market share for enterprise large language model (LLM) APIs. Meanwhile, emerging competitors such as Anthropic are steadily gaining traction, carving out their own niches in the market. OpenAI's strategic partnerships with Microsoft and Nvidia have provided critical support, granting access to advanced infrastructure and resources. These alliances have been instrumental in allowing OpenAI to scale its operations and maintain its competitive edge. However, they also highlight the company's reliance on external collaborators, which could become a vulnerability if market dynamics shift. In an industry where financial endurance often determines success, OpenAI must carefully navigate these competitive pressures to secure its future. Explore further guides and articles from our vast library that you may find relevant to your interests in OpenAI. Some analysts argue that OpenAI's deep integration into the U.S. tech ecosystem makes it "too big to fail." With Microsoft embedding OpenAI's models into its products and Nvidia supplying essential hardware, OpenAI has become a cornerstone of the broader AI landscape. This interconnectedness has fueled speculation that the U.S. government might intervene to prevent OpenAI's collapse, given its strategic importance in the global AI race. However, this perspective is not without controversy. Critics caution that government intervention could distort market dynamics, stifle competition, and discourage innovation. For OpenAI, the challenge lies in balancing its ambitious goals with the need for financial sustainability while navigating an increasingly interconnected and competitive industry. The company's ability to maintain independence and adaptability will be critical as it seeks to solidify its position in the AI sector. OpenAI's reliance on substantial capital and favorable economic conditions makes it particularly vulnerable to shifts in the funding environment. Factors such as rising interest rates or a slowdown in investment flows could jeopardize the company's ability to sustain its operations and achieve its vision of AGI. This financial fragility highlights the broader risks facing the AI industry, where companies are locked in a high-stakes race to outlast one another. The current trajectory of the AI sector mirrors historical infrastructure investments, where early losses were often necessary to achieve market dominance. However, the capital-intensive nature of AI development amplifies the stakes. For OpenAI and its competitors, the ability to weather financial pressures will be a decisive factor in determining long-term success. The company's leadership must carefully manage resources while maintaining the pace of innovation required to stay ahead in this competitive landscape. Sam Altman's defensive tone during the interview reflects the growing scrutiny on OpenAI's leadership and decision-making. As the public face of the company, Altman has faced criticism over OpenAI's transition to a for-profit model and his financial ties to related partnerships. These controversies have sparked debates about whether OpenAI's mission to advance AI for the benefit of humanity aligns with its operational and financial strategies. The interview also underscored the tension between OpenAI's lofty ambitions and the practical challenges of achieving them. Altman's visible frustration highlighted the immense pressure on leaders in the AI industry to deliver results while navigating complex financial and competitive landscapes. For OpenAI, maintaining public trust and demonstrating transparency will be critical as it continues to pursue its ambitious goals. The challenges facing OpenAI are emblematic of broader trends in the AI sector. As companies race to develop more advanced models and achieve AGI, the financial and operational risks associated with these efforts are becoming increasingly apparent. The reliance on massive compute infrastructure, coupled with the need to sustain short-term losses, has created a high-stakes environment where only the most resilient players are likely to succeed. For policymakers, the rise of AI presents both opportunities and challenges. Governments must strike a delicate balance between fostering innovation and mitigating economic and strategic risks. As the AI industry evolves, the role of regulation and potential government intervention will likely become central to discussions about the future of technology and its societal impact. Sam Altman's viral interview serves as a lens through which to examine the complexities of the AI industry. From financial sustainability and competitive pressures to public perception and potential government involvement, the road ahead is fraught with challenges. OpenAI's ability to navigate these obstacles will not only shape its own future but also influence the trajectory of the broader AI landscape.

Sam Altman Says OpenAI Revenue Exceeds $13 Billion Estimate, Says Could Reach $100 Billion By 2027 - Broadcom (NASDAQ:AVGO), Amazon.com (NASDAQ:AMZN)

OpenAI CEO Sam Altman said the company is bringing in far more revenue than the widely cited $13 billion annual estimate. The executive of the artificial intelligence startup also defended its $1.4 trillion investment in infrastructure. In a Friday episode of the Bg2 Pod, host Brad Gerstner, founder of Altimeter Capital, pressed Altman on how OpenAI could justify such a massive infrastructure commitment given its current scale of revenue. "We're doing well more revenue than that," Altman replied. Microsoft Corp. (NASDAQ:MSFT) CEO Satya Nadella also appeared on the podcast. OpenAI Announces Major Infrastructure Deals Nvidia Corp. (NASDAQ:NVDA), Broadcom Inc. (NASDAQ:AVGO), and Oracle Corp. (NYSE:ORCL) have all announced AI infrastructure agreements with OpenAI in recent weeks. Other AI giants, including Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Meta Platforms Inc. (NASDAQ:META), and leading OpenAI investor Microsoft, also spend hundreds of billions of dollars every year on capital projects. Losses Persist Despite Revenue Growth While OpenAI continues to raise tens of billions of dollars from investors and generate billions more in revenue, Altman has warned losses will persist. See Also: China EV Heat Check: Nio, Li Auto, XPeng on Fire According to The Wall Street Journal, Microsoft's latest quarterly results included a $4 billion charge that implies OpenAI lost $12 billion last quarter. Altman Pushes Back Against Doubters On the podcast, Altman slammed skeptics who questioned OpenAI's growth prospects. "We do plan for revenue to grow steeply. Revenue is growing steeply," he said. According to Altman, the business is placing a long-term wager on sustained expansion, anticipating that ChatGPT will not only grow but also emerge as a significant force in the AI cloud services market. He went on to say that AI capable of automating scientific work has the potential to generate enormous value, and that OpenAI's consumer device business could play a significant role in its operations. One of the few times, according to Altman, when having a publicly traded company would be desirable is when there is a chance for short sellers to lose. Altman previously said that OpenAI will likely go public someday, though he said he is not "well-suited" to be a public company CEO. "I would love to tell them they could just short the stock, and I would love to see them get burned on that," he said. Revenue Could Hit $100 Billion In 2027 While discussing the possibility of OpenAI going public in the coming years, Gerstner suggested the company could reach annual revenues exceeding $100 billion by 2028 or 2029, to which Altman quickly responded that the milestone could come even sooner: "How about '27?" Read Next: 'I'm Envious Of The Current Generation Of 20-Year-Old Dropouts,' Says Sam Altman, Admitting He Hasn't Had A 'Real Chunk Of Free Mental Space' In Years Photo Courtesy: Meir Chaimowitz on Shutterstock.com Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AMZNAmazon.com Inc$244.309.62%OverviewAVGOBroadcom Inc$369.74-1.79%GOOGAlphabet Inc$281.47-0.15%GOOGLAlphabet Inc$280.71-0.27%METAMeta Platforms Inc$651.08-2.31%MSFTMicrosoft Corp$517.72-1.53%NVDANVIDIA Corp$202.61-0.14%ORCLOracle Corp$262.342.12%Market News and Data brought to you by Benzinga APIs

Sam Altman touts trillion-dollar AI vision as OpenAI restructures to chase scale

Altman envisions OpenAI becoming a massive AI infrastructure powerhouse, pursuing trillions in funding, huge compute expansion, and an eventual IPO. Despite bold plans, unclear financing, internal strife, and criticism raise doubts as OpenAI shifts from research lab to ambitious corporate giant. Soon after ChatGPT was released to the public in late 2022, OpenAI CEO Sam Altman told employees they were on the cusp of a new technological revolution. OpenAI could soon become "the most important company in the history of Silicon Valley," Altman said, according to two former OpenAI employees. There is no shortage of ambition in the US tech industry. Meta boss Mark Zuckerberg and Amazon founder Jeff Bezos often speak of transforming the world. Tesla head Elon Musk aims to colonize Mars. Even by those standards, Altman's aspirations stand out. After reaching a deal with Microsoft on Tuesday that removes limits on how OpenAI raises money, Altman laid out even more ambitious plans to build AI infrastructure to meet growing demand. The restructuring marks a pivotal moment for OpenAI, cementing its transition from a research-focused lab into a corporate giant structured to raise vast sums of public capital, eventually through a stock market listing. On a livestream on Tuesday, Altman said OpenAI was committed to developing 30 gigawatts of computing resources for $1.4 trillion. Eventually, he said he would like OpenAI to be able to add 1 gigawatt of compute every week - an astronomical sum given that each gigawatt currently comes with a capital cost of more than $40 billion. Altman said over time, capital costs could halve, without saying how. "AI is a sport of kings," said Gil Luria, an analyst at D.A. Davidson. "Altman understands that to compete in AI he will need to achieve a much bigger scale than OpenAI currently operates at." But Altman has offered few details on how he might accomplish his biggest ideas. Altman has previously said OpenAI is exploring a range of creative financing options. The company also has struck a series of unusual, seemingly circular deals with public companies like Nvidia. The transactions have drawn criticism that they create the illusion of more growth than is realistic, raising the specter of an AI bubble. Trillions of dollars needed In January, Altman flew to the White House to announce Stargate, a $500 billion AI infrastructure project the company is working on with Oracle, SoftBank, Nvidia and cloud provider CoreWeave. Standing next to US President Donald Trump, who he had once criticized as "irresponsible", Altman said the initiative would create hundreds of thousands of jobs. "We wouldn't be able to do this without you, Mr. President," he said. At the time, Altman said Stargate would build 10 GW of data center capacity, which has now tripled as per his comments on Tuesday. Those plans are just the start, Altman said. To support the massive investment, he said, "eventually we need to get to hundreds of billions a year in revenue." That would require OpenAI - expected to hit an annual run rate of $20 billion in revenue by year-end - to grow at 10 times its current pace. The newly formed OpenAI Foundation will direct the company's mission and use its resources to use AI to help cure diseases and a new initiative to fund "AI resilience," OpenAI said, although it is unclear where the loss-making company will find the money. Path to IPO ChatGPT sparked the AI craze, forcing Big Tech to spend billions of dollars to keep up. Altman has since steered OpenAI from a nonprofit devoted to AI research to a $500 billion company that is trying to develop AI systems so powerful they could fundamentally alter society. Altman, who briefly contemplated a run for California governor in 2017, does not hold equity in OpenAI and earns just $76,000 a year from the company. The bulk of his net worth comes from his investments in major tech companies, including Stripe, Airbnb and, more recently, a litany of startups seeking to make money on the AI boom sparked by OpenAI. Even in his 20s, he was a force. In 2008, Paul Graham, who founded Y Combinator, summed up a then 23-year-old Altman: "You could parachute him into an island full of cannibals and come back in five years and he'd be the king." Altman, now 40, succeeded Graham as the startup accelerator's president in 2014. Tuesday's restructuring news, along with Altman's comment that an initial public offering is the most likely path for OpenAI, suggests Altman is readying to finance his grander ambitions. In pursuit of his goals, Altman has made a few enemies, including billionaire Musk, an OpenAI co-founder and early backer who left the company in 2018. Musk has sued OpenAI, saying it strayed from its nonprofit mission. He has also criticized the Stargate project as lacking funding. This spring, several former OpenAI employees supported Musk's lawsuit, arguing that Altman could not be trusted to prioritize public safety over profits. Two years ago, Altman was ousted from OpenAI after falling out with the board. He was reinstated a few days later. That period will be the subject of a Hollywood movie, "Artificial", which is scheduled for release next year. Actor Andrew Garfield, who played Facebook co-founder Eduardo Saverin in "The Social Network," will star as Altman, IMDb says.

Sam Altman Says OpenAI Revenue Is Over $13 Billion and Growing Steeply | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. That figure has been widely reported, and some observers have wondered how OpenAI could pay for its recent compute deals with $13 billion in revenue, according to Seeking Alpha, which flagged Altman's remarks in a Monday (Nov. 3) report. "First of all, we're doing well more revenue than that," Altman said on the podcast, adding that the company's revenue is growing steeply, per the report. When one of the podcast's hosts asked if OpenAI could reach $100 billion in revenue in 2028 or 2029, Altman said, according to the report, "How about '27?" OpenAI and AWS announced Monday that they reached a $38 billion agreement that enables OpenAI to run its artificial intelligence (AI) workloads on AWS infrastructure. Under the agreement, OpenAI is accessing AWS compute comprising hundreds of thousands of Nvidia GPUs and can expand to tens of millions of CPUs to scale agentic workloads. "Scaling frontier AI requires massive, reliable compute," Altman said in a press release announcing the deal. "Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone." In an Oct. 29 post on X, Altman said OpenAI would like to build an AI factory to make 1 gigawatt of compute per week of new capacity and do "at a greatly reduced cost relative to today." The company has committed to about 30 gigawatts of compute with a total cost of ownership of about $1.4 trillion. "We are comfortable with this given what we see on the horizon for model capability growth and revenue growth," Altman said in the post. It was reported Oct. 28 that OpenAI is planning an initial public offering that could value the company at up to $1 trillion. The AI startup is considering filing with regulators as soon as the second half of next year, according to the report. On BG2Pod, Altman said, per the Seeking Alpha report, that there are "not many times that I want to be a public company" but that he would like OpenAI to be one to hurt short sellers.

Sam Altman's OpenAI Targets Up To $1 Trillion Valuation In Historic IPO After Major Restructuring And California Approval: Report - Microsoft (NASDAQ:MSFT), SoftBank Group (OTC:SFTBF)

OpenAI is reportedly laying the groundwork for a potential initial public offering that could value the ChatGPT maker at up to $1 trillion, marking what could become one of the largest IPOs in history. OpenAI Reportedly Weighs 2026 Or 2027 IPO Amid Soaring AI Momentum OpenAI is exploring the possibility of filing with securities regulators as early as the second half of 2026, reported Reuters, citing people familiar with the matter. In early discussions, the company has reportedly considered targeting a valuation starting around $60 billion, potentially higher. However, they cautioned that the talks remain preliminary and that both the timing and figures could shift based on the company's growth trajectory and overall market conditions. Some insiders suggest Chief Financial Officer Sarah Friar has indicated a 2027 listing target, though advisers say it could happen sooner depending on market conditions, the report said. While the company has not confirmed a timeline, an OpenAI spokesperson told the publication, "An IPO is not our focus ... We are building a durable business and advancing our mission so everyone benefits from AGI." OpenAI did not immediately respond to Benzinga's request for comments. See Also: Microsoft Q1 Preview: With 2 'Near-Term Monopolies,' Analyst Says Outperformance To Continue Restructuring Clears Path For Public Markets The reported IPO plans follow a major corporate overhaul that reduces OpenAI's reliance on Microsoft Corporation (NASDAQ:MSFT). The AI startup is still controlled by a nonprofit entity, now known as the OpenAI Foundation. The foundation holds a 26% stake in the company and could earn more shares if certain milestones are met. A successful public offering would represent a significant victory for investors, including SoftBank Group (OTC:SFTBF) (OTC:SFTBY), Thrive Capital and Abu Dhabi's MGX. Microsoft -- one of OpenAI's largest supporters -- currently holds roughly 27% of the company following its $13 billion investment. This week, California Attorney General Rob Bonta approved the company's recapitalization plan after months of review. CEO Sam Altman praised the resolution on X, writing, "California is my home, and I love it here." OpenAI's AI Ambitions And Market Context OpenAI's annualized revenue run rate is expected to hit $20 billion by year-end. Altman has acknowledged the company's massive capital needs, saying during a livestream on Tuesday. He spoke about the potential of going public, saying, "I think it's fair to say it is the most likely path for us, given the capital needs that we'll have." Satya Nadella Highlights Strengthened OpenAI Partnership During Q1 Call On Wednesday, OpenAI-backer Microsoft reported its first-quarter financial results. During the earnings call, CEO Satya Nadella said that the new agreement with OpenAI gives Microsoft "more certainty" about intellectual property and how AGI is defined. "This is a great milestone for both companies, and we continue to benefit mutually from each other's growth across multiple dimensions," Nadella stated earlier during the call. "Already, we have roughly 10x'd our investment, and OpenAI has contracted an incremental $250 billion of Azure services." Microsoft posted first-quarter revenue of $77.7 billion, marking an 18% year-over-year increase and surpassing the Street consensus estimate of $75.3 billion, according to Benzinga Pro data. Benzinga's Edge Stock Rankings place MSFT in the 97th percentile for Growth, highlighting its robust long-term fundamentals and sustained investor confidence. Click here to see how it stacks up against its peers. Read Next: Magnificent 7 Market Cap Tops $22 Trillion - And Nvidia Just Got Bigger Than Japan Photo Courtesy: Mijansk786 on Shutterstock.com Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. MSFTMicrosoft Corp$519.99-4.07%OverviewSFTBFSoftBank Group Corp$163.70-6.19%SFTBYSoftBank Group Corp$88.662.04%Market News and Data brought to you by Benzinga APIs

OpenAI Mulling $1 Trillion IPO as AI Costs Compound | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. That's according to a report late Tuesday (Oct. 29) by Reuters, citing three sources who say the public listing could value OpenAI at up to $1 trillion. The artificial intelligence (AI) startup is considering filing with regulators as soon as the second half of next year, sources told Reuters, and has -- in preliminary talks -- looked at raising at least $60 billion, but likely more. Sources added that OpenAI Chief Financial Officer Sarah Friar has told some associates the company is targeting a 2027 listing, though some advisers predict it could come even sooner, around 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," referring to artificial general intelligence, or AI that can function at or above the level of humans. Reuters notes that the IPO plans indicate a new urgency inside OpenAI to tap into public markets following its restructuring, which lessens its dependence on Microsoft. An IPO, the report added, would help finance CEO Sam Altman's plans to spend trillions on AI infrastructure, according to sources familiar with the company. The sources added that losses are also piling up inside the company, with an annualized revenue run rate expected to hit $20 billion by the end of the year. Also Wednesday, Altman said OpenAI would like to develop an AI factory to make 1 gigawatt of compute per week of new capacity. The company would like to do so "at a greatly reduced cost relative to today" Altman said in a post on X. OpenAI has committed to about 30 gigawatts of compute with a total cost of ownership of about $1.4 trillion, Altman added, saying the company is "comfortable with this given what we see on the horizon for model capability growth and revenue growth." In other OpenAI news, PYMNTS wrote last week about the debate around -- and possible risks involving -- AI browsers after the company introduced its Atlas. Ben Colman, CEO of Reality Defender, questioned whether consumers need a standalone AI browser to begin with. "AI browsers are a hammer in search of a nail," he told PYMNTS. "These 'new browsers' are just Chrome with an LLM [large language model] bolted on. ... Why upend your entire way of browsing for the same browser with an LLM attached when it can introduce new vulnerabilities and security holes to your experience or that of your organization?"

OpenAI lays groundwork for juggernaut IPO at up to US$1 trillion valuation

SAN FRANCISCO -- OpenAI is laying the groundwork for an initial public offering that could value the company at up to US$1 trillion, three people familiar with the matter said, in what could be one of the biggest IPOs of all time. 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 is not our focus, so we could not possibly have set a date," an OpenAI spokesperson said. "We are building a durable business and advancing our mission so everyone benefits from AGI." The IPO preparations signal a new urgency inside the ChatGPT maker to tap public markets now that a complex restructuring is complete that reduces its reliance on Microsoft. 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. OpenAI started out as a nonprofit in 2015. A few years later, the company overhauled its structure again so that the nonprofit would have oversight and control over the for-profit arm. The main goal of the nonprofit was to ensure that OpenAI developed AI technology safely, rather than prioritizing profits like a traditional company. This week, OpenAI revamped itself yet again. It is still controlled by a nonprofit, now called the OpenAI Foundation, but the nonprofit has a 26 per cent stake in OpenAI Group and a warrant to receive additional shares if the company hits certain milestones. This change makes the nonprofit a significant stakeholder in OpenAI's financial success. A successful offering would mark a major win for investors such as SoftBank, Thrive Capital and Abu Dhabi's MGX. Microsoft, one of its biggest backers, now owns about 27 per cent of the company after investing $13 billion. The deliberations come as AI is driving a surge in public markets. Earlier this year, AI cloud company CoreWeave went public at a $23 billion valuation and has roughly tripled since. On Wednesday, Nvidia became the first company to reach a $5 trillion market value, powered by a rally that has cemented its role at the center of the global AI boom. The Wall Street Journal first reported on the possibility of OpenAI going public as early as 2027.

Altman touts trillion-dollar AI vision as OpenAI restructures to chase scale

SAN FRANCISCO -Soon after ChatGPT was released to the public in late 2022, OpenAI CEO Sam Altman told employees they were on the cusp of a new technological revolution. OpenAI could soon become "the most important company in the history of Silicon Valley," Altman said, according to two former OpenAI employees who heard his remarks. There is no shortage of ambition in the U.S. tech industry. Meta boss Mark Zuckerberg and Amazon founder Jeff Bezos often speak of transforming the world. Tesla head Elon Musk aims to colonize Mars. Even by those standards, Altman's aspirations stand out. After reaching a deal with Microsoft on Tuesday that removes limits on how OpenAI raises money, Altman laid out even more ambitious plans to build out AI infrastructure to meet growing demand for tools powered by AI. On a livestream on Tuesday, Altman said OpenAI was committed to developing 30 gigawatts of computing resources for $1.4 trillion. Eventually, he said he would like OpenAI to be able to add 1 gigawatt of compute every week - an astronomical sum given that each gigawatt currently comes with a capital cost of more than $40 billion. Altman said over time, capital costs could halve, without saying how. "AI is a sport of kings," said Gil Luria, an analyst at D.A. Davidson. "Altman understands that to compete in AI he will need to achieve a much bigger scale than OpenAI currently operates at." But Altman has offered few details on how he might accomplish his biggest ideas. Altman has previously said OpenAI is exploring a range of creative financing options. OpenAI also has struck a series of unusual, seemingly circular deals with public companies like Nvidia. The transactions have drawn criticism that they create the illusion of more growth than is realistic, raising the specter of an AI bubble. TRILLIONS OF DOLLARS NEEDED In January, Altman flew to the White House to announce Stargate, a $500 billion AI infrastructure project the company is working on with Oracle, SoftBank, Nvidia and cloud provider CoreWeave. Standing next to U.S. President Donald Trump, who he had once criticized as "irresponsible", Altman said the initiative would create hundreds of thousands of jobs. "We wouldn't be able to do this without you, Mr. President," he said. At the time, Altman said Stargate would build 10 GW of data center capacity, which has now tripled as per his comments on Tuesday. Those plans are just the start, Altman said. To support the massive investment, he said, "eventually we need to get to hundreds of billions a year in revenue." That would require OpenAI - expected to hit an annual run rate of $20 billion in revenue by year-end - to grow at 10 times its current pace. PATH TO IPO ChatGPT sparked the AI craze, forcing Big Tech to spend billions of dollars to keep up. Altman has since steered OpenAI from a nonprofit devoted to AI research to a $500 billion company that is trying to develop AI systems so powerful they could fundamentally alter society. Altman, who briefly contemplated a run for California governor in 2017, does not hold equity in OpenAI and earns just $76,000 a year from the company. The bulk of his net worth comes from his investments in major tech companies, including Stripe, Airbnb and, more recently, a litany of startups seeking to make money on the AI boom sparked by OpenAI. Even in his 20s, he was a force. In 2008, Paul Graham, who founded Y Combinator, summed up a then 23-year-old Altman: "You could parachute him into an island full of cannibals and come back in five years and he'd be the king." Altman, now 40, succeeded Graham as the startup accelerator's president in 2014. Tuesday's restructuring news, along with Altman's comment that an initial public offering is the most likely path for OpenAI, suggests Altman is readying to finance his grander ambitions. In pursuit of his goals, Altman has made a few enemies, including billionaire Musk, an OpenAI co-founder and early backer who left the company in 2018. Musk has sued OpenAI, saying it has digressed from its nonprofit goals of developing AI for humanity. He has also criticized the Stargate project as lacking funding. This spring, several former OpenAI employees supported Musk's lawsuit, arguing that Altman could not be trusted to prioritize public safety over profits. Two years ago, Altman was ousted from OpenAI after falling out with the board. He was reinstated a few days later. That period will be the subject of a Hollywood movie, "Artificial", which is scheduled for release next year. Actor Andrew Garfield, who played Facebook co-founder Eduardo Saverin in "The Social Network," will star as Altman, IMDb says. (Reporting by Deepa Seetharaman in San Francisco; Editing by Sayantani Ghosh and Jamie Freed)