OpenAI is preparing to file a confidential draft of its IPO prospectus with the US Securities and Exchange Commission, targeting a public market debut in September 2026. Goldman Sachs and Morgan Stanley are leading the process for what could become the largest IPO in history, with the company aiming to raise $60 billion at a $730 billion pre-money valuation.
$110 Billion Funding Round Precedes IPO Plans
OpenAI recently secured $110 billion in new investment at a $730 billion pre-money valuation, bringing its current private market valuation to approximately $852 billion:
- $50 billion from Amazon: Largest single contribution to the round
- $30 billion from NVIDIA: Reflecting AI chip manufacturer's strategic interest
- $30 billion from SoftBank: Continuing the firm's AI investment strategy
- Previous funding: $122 billion round at an $852 billion post-money valuation, anchored by Amazon, Nvidia, SoftBank, and Microsoft
CFO Expresses Concerns About Timeline and Profitability
Despite investor enthusiasm, OpenAI CFO Sarah Friar has expressed reservations about the company's readiness for public markets. Friar stated she does not believe the company will be ready for an IPO by 2026, highlighting a tension between investor pressure to realize returns and operational readiness for public market scrutiny.
The financial challenges are substantial. OpenAI has never turned a profit and faces significant near-term losses:
- 2026 projected losses: $14 billion
- Cumulative losses: Potentially reaching $44 billion before achieving profitability
- Profitability timeline: Internal projections suggest 2029
IPO Could Push Valuation Past $1 Trillion
Analysts covering the deal expect the listing could push OpenAI past a $1 trillion market capitalization, making it one of the world's most valuable companies. The $60 billion raise would more than double Saudi Aramco's 2019 listing of $25.6 billion, currently the largest IPO on record. This ambitious target reflects both investor appetite for AI exposure and OpenAI's dominant market position in large language models.
Key Takeaways
- OpenAI is preparing a confidential IPO filing targeting a September 2026 public debut
- Recent funding round raised $110 billion at a $730 billion pre-money valuation from Amazon, NVIDIA, and SoftBank
- The company aims to raise $60 billion in its IPO, which would exceed Saudi Aramco's $25.6 billion record
- OpenAI CFO Sarah Friar has expressed doubts about the company's readiness for 2026 IPO
- The company is projected to lose $14 billion in 2026 alone, with profitability not expected until 2029