Key Takeaways
- OpenAI may submit confidential IPO documentation by Friday, May 23, with plans for a September market entry
- Morgan Stanley and Goldman Sachs are spearheading the offering process
- Following March’s record $122 billion private investment round, the firm carries an $852 billion valuation
- Earlier this week, a federal court threw out Elon Musk’s legal challenge, removing a significant roadblock
- The company has allegedly fallen short of internal benchmarks for both revenue generation and user acquisition
The artificial intelligence powerhouse behind ChatGPT is gearing up to submit confidential paperwork for a stock market debut potentially as soon as this Friday, The Wall Street Journal reports.
Morgan Stanley and Goldman Sachs are collaborating with the organization on the submission. Sam Altman, OpenAI’s chief executive, has set his sights on having the firm trading publicly by September 2026.
Following the conclusion of March 2026’s unprecedented $122 billion private investment round—the largest such transaction on record—OpenAI achieved an $852 billion valuation. Previous industry speculation has pointed toward a potential $1 trillion market capitalization once publicly traded.
A company representative stated to The Wall Street Journal: “As part of normal governance, we regularly evaluate a range of strategic options. Our focus remains on execution.”
Court Victory Paves Way for Market Debut
The timing of this IPO preparation follows closely on the heels of OpenAI prevailing in litigation brought by one of its founding members. Earlier this week, a federal jury sided against Elon Musk, determining his claims were filed beyond acceptable time limits.
Musk’s $150 billion lawsuit targeted the company’s transformation from nonprofit status to a for-profit entity. He contended this shift was improper, especially considering his $38 million in contributions made between 2015 and 2017.
The judicial outcome eliminates a substantial legal uncertainty that had loomed over the organization. Musk has indicated his intention to pursue an appeal.
Revenue Performance Shows Mixed Results
Sarah Friar, OpenAI’s Chief Financial Officer, announced in January that the organization achieved a $20 billion annualized revenue pace during 2025, representing a significant jump from 2024’s $6 billion figure.
However, internal projections for both revenue expansion and user base development have reportedly not been achieved. Friar cautioned team members that sluggish revenue progression might constrain the company’s capacity to fulfill data center obligations.
The firm has pledged $1.4 trillion across the coming seven to eight years for data center infrastructure development. Additionally, a $600 billion commitment over five years targets semiconductor acquisition and data center construction.
As of early 2026, the platform serves 700 million users on a weekly basis.
The pathway to sustained profitability remains undefined for OpenAI. Similar to other major AI companies entering public markets, expectations point toward elevated valuation multiples.
Competitive Landscape Intensifies
Competitor Anthropic revealed $30 billion in annualized revenue this April and is currently pursuing additional funding that could establish a $900 billion valuation, potentially exceeding OpenAI’s most recent private market assessment.
SpaceX is simultaneously advancing its own public offering preparations. Goldman Sachs, the identical institution collaborating with OpenAI, is managing that transaction as well.
Technology sector IPO momentum has been building recently. Cerebras, an AI semiconductor manufacturer, completed its public offering and experienced strong initial trading performance.
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