OpenAI IPO Timing and Valuation Outlook

OpenAI is weighing a postponement of its highly anticipated initial public offering to 2027, according to a New York Times report that cites three individuals involved in the company’s internal deliberations. The company had previously filed a confidential S‑1 with the U.S. Securities and Exchange Commission and had originally targeted a public debut in the third or fourth quarter of 2026.

Valuation Target and Internal Push

Chief Executive Sam Altman has aggressively pressed advisers to secure a $1 trillion valuation for the ChatGPT maker, a figure that far exceeds the valuation range of $730 billion to $852 billion established in its most recent private funding round. Altman has reportedly rejected any compromise on this trillion‑dollar target.

Financial Performance Highlights

OpenAI’s disclosed financials show revenue of $2 billion per month, marking a historic level for the company. However, audited statements for the last fiscal year reveal a net loss of $38.5 billion, driven primarily by $34 billion of spending on computing power, research and development, and structural corporate shifts.

Market Context and Recent IPO Benchmarks

The discussion of OpenAI’s timing occurs against the backdrop of SpaceX’s June 2026 IPO, which raised over $85 billion and achieved a debut valuation of $1.77 trillion. Despite the strong debut, SpaceX’s share price subsequently fell to $153 from a recent high of $202, underscoring the volatility that can follow mega‑scale listings.

Advisers’ Recommendations and Decision Path

Advisers presented Altman with two stark alternatives: (1) wait until 2027 to allow market conditions to stabilize and to let the company’s financials mature toward the $1 trillion valuation, or (2) accept a lower valuation to accelerate an IPO by late 2026. According to a source in direct contact with Altman, the CEO firmly rejected the lower‑valuation option, indicating a willingness to wait for a market environment that aligns with the company’s price expectations.

Outlook

OpenAI appears prepared to delay its market entry until 2027 to secure its desired valuation, despite the recent financial losses and broader tech‑sector volatility.