OpenAI is considering putting off its expected initial public offering until 2027, according to a report that cites three individuals familiar with the company’s internal discussions. The company had previously taken a formal step toward going public by filing a confidential S-1 with the U.S. Securities and Exchange Commission and had signaled an ambition to list as early as the third or fourth quarter of this year.
The possible postponement underscores a deep internal disagreement over the optimal timing for a public debut, the state of markets, and the valuation the company seeks at listing. Insiders say Chief Executive Sam Altman has strongly urged advisers to pursue a $1 trillion valuation for the maker of ChatGPT - a significant increase from the valuation range assigned during the company’s most recent private financing, which was between $730 billion and $852 billion.
For months, a public offering for OpenAI had appeared likely. The company cleared a major legal obstacle when a restrictive lawsuit brought by Elon Musk was dismissed, and its growth metrics have been notable, with reported revenue reaching $2 billion per month. That momentum, together with investor appetite for large technology debuts, had set expectations that OpenAI could press ahead this year.
SpaceX’s blockbuster June 2026 listing was widely read as a supporting sign for other mega-cap tech offerings. SpaceX raised in excess of $85 billion at its IPO and opened with a valuation of $1.77 trillion, a debut that many market observers viewed as a potential precedent for similarly large tech flotations. But the immediate trading post-listing also demonstrated market volatility: SpaceX shares have retreated to $153 from a peak of $202 reached last week.
Recent financial disclosures from OpenAI have added a sobering dimension to the debate. Audited accounts filed by the company showed a net loss of $38.5 billion for the last year, a result driven largely by $34 billion in expenditures on computing infrastructure, research and development, and organizational changes. Those figures have prompted increased scrutiny from investors about whether the commercial returns from generative AI can match the substantial capital and operating costs required to build and scale the technology.
Advisers to OpenAI have warned that retail demand could be constrained in the current market environment and presented management with two primary options, according to sources:
- Delay an offering until 2027 to allow market sentiment to calm and for the company’s financial profile to strengthen on the path to a $1 trillion valuation.
- Proceed with an IPO by late 2026 at a lower valuation in order to access public markets sooner.
One source said they spoke directly with Altman and that he rejected any compromise on the $1 trillion target. Based on that position, OpenAI appears prepared to wait for more favorable conditions to ensure it lists at the valuation level its leadership desires.
The deliberations highlight the tension between ambitions for a landmark tech listing and the realities of market appetite and corporate finances. While some investors have shown an appetite for large-scale offerings, the combination of steep recent losses and the immediate pullback in another major tech IPO has led advisers and company executives to reassess the timing and pricing of a potential OpenAI debut.
For now, company executives and advisers remain engaged in what insiders describe as a high-stakes negotiation over pace and price. If OpenAI holds firm on the $1 trillion figure, that stance could push the IPO into 2027; if management opts for a quicker path to the public markets, it may need to accept a lower initial valuation.
Summary
OpenAI is reportedly debating whether to delay its IPO until 2027 as management insists on a $1 trillion valuation while advisers caution that market volatility and the company’s large audited losses may necessitate a later listing or a lower valuation. The firm had submitted a confidential S-1 and had initially targeted a public debut in late 2026.
Key points
- OpenAI filed a confidential S-1 and had aimed for an IPO in the third or fourth quarter of this year but may delay to 2027.
- Chief Executive Sam Altman is reportedly demanding a $1 trillion valuation, compared with a prior private funding valuation of $730 billion to $852 billion.
- OpenAI reported $2 billion in monthly revenue but disclosed a $38.5 billion net loss for the last year, driven by $34 billion in spending on computing, R&D and structural changes. Sectors affected include technology, cloud computing, and capital markets.
Risks and uncertainties
- Market volatility following other large IPOs may reduce retail and institutional demand for a high-valuation listing - potential impact on equity markets and investor sentiment.
- Substantial audited losses and heavy spending on infrastructure raise questions about near-term profitability and cash flow - potential impact on technology and cloud service providers that supply computing resources.
- Choosing to wait for a $1 trillion valuation could prolong exposure to evolving regulatory, competitive, and market risks without access to public capital - potential impact on company financing and strategic flexibility.