OpenAI, the artificial intelligence powerhouse behind ChatGPT, is laying the groundwork for an ambitious initial public offering that could value the company at up to $1 trillion, a move made possible by its recent, complex transformation from a non-profit to a traditional for-profit entity.
The company is reportedly aiming to file with U.S. stock market regulators by mid-2026, with a stock market debut potentially in 2027. This timeline was communicated by OpenAI’s Chief Financial Officer, Sarah Friar, to associates, though plans remain preliminary and subject to market conditions and business growth.
This strategic financial maneuver is intended to provide CEO Sam Altman with a substantial pool of capital. These funds are crucial for financing the company’s “disruptive” artificial intelligence development goals.
The path to an IPO required a significant internal overhaul. OpenAI recently completed a deep restructuring process that began in 2024, converting it into a more conventional for-profit company. This shift was deemed essential to simplify the process of raising capital through venture funds, debt, and ultimately, a public listing.
The transformation was met with resistance. Elon Musk, a co-founder who later left to create a rival AI venture, filed a lawsuit seeking to block the restructuring. He alleged that the move violated the company’s foundational non-profit principles and even attempted to acquire the controlling non-profit entity.
Additionally, former employees and leaders from the non-profit sector urged regulators to halt the process. The restructuring also involved extensive negotiations with Microsoft, OpenAI’s primary financial backer, and concessions to state regulators, including Delaware Attorney General Kathy Jennings.
The deal was finalized this week after a year of intense discussions. Another major investor, SoftBank, had reportedly threatened to withdraw billions if the restructuring was not completed promptly.
Following the successful transformation, CFO Friar internally acknowledged the operational simplification, stating that the company is “almost a Normal Co.” This change, she noted, makes it “much less complex” to raise capital.
With the corporate structure now clear, OpenAI is accelerating its substantial investment in AI infrastructure. Altman has announced a commitment of $1.4 trillion towards data centers, advanced chips, and securing top talent.
If the IPO materializes, it would position OpenAI among the world’s most valuable technology companies, potentially surpassing current valuations like that of Nvidia. However, sources close to the matter stress that the final timing, valuation, and capital raised will depend on critical milestones, such as the launch of new AI models, and the broader economic climate.
Founded in 2015 as a non-profit organization, OpenAI rose to global prominence with the launch of its conversational AI, ChatGPT, in 2022. The company has since attracted tens of billions of dollars from investors, including Microsoft. This IPO preparation signals the end of its hybrid operational model and marks the beginning of intensified competition in the evolving technological landscape.