OpenAI said to plan $1t IPO, potentially record-breaking

OpenAI is preparing for a potential IPO that could value the company at up to US$1 trillion, according to three people familiar with the discussions.

The AI firm is reportedly considering a filing with securities regulators as early as the second half of 2026.

The company has discussed raising at least US$60 billion, though sources say these talks are still at an early stage and plans may change based on business growth and market conditions.

Chief financial officer Sarah Friar has told some associates that OpenAI is targeting a 2027 listing, according to the sources.

If completed, the IPO could be among the largest on record.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Investors lack public data on revenue run-rate (annualized revenue based on recent performance), gross margins (revenue minus cost of goods sold as a percentage of revenue), or cash burn rate (net cash outflow). The updated deal adds a $250 billion purchase of Microsoft Azure cloud services 1 (Azure is Microsoft’s cloud computing platform).
Microsoft keeps intellectual property rights to OpenAI models and products through 2032 1. Many sales may flow through Microsoft’s enterprise channels, not direct. The split and margins are not public.
The deal cut Microsoft’s equity from 32.5% to 27% and removed its “right of first refusal” on new cloud workloads 1 (a contractual priority to take on computing tasks before others). Flexibility may improve cloud pricing, though the $250 billion Azure pledge will weigh on margins.
OpenAI’s $500 billion Stargate plan spans Texas and New Mexico 2. It also covers Ohio and Wisconsin 2. The build may need one fifth of the US skilled trade workforce 2, which signals long timelines that vendors can plan around.
The company warned of an “electron gap” with China 2 (a shortfall between electricity supply and demand). Microsoft reported $34.9 billion in quarterly capital expenditure (CapEx) 3. About half went to graphics processing units (GPUs) and central processing units (CPUs) 3. Suppliers can track Power Purchase Agreements (contracts to buy electricity) and substation work to time bids for backup power. They can also target grid scale batteries, which data centers increasingly deploy 4. Battery energy storage system firms, specialized electrical contractors, and renewable energy developers can pursue work as OpenAI seeks cost effective power ahead of a possible 2026 to 2027 IPO.