OpenAI is reportedly moving quickly toward a fourth-quarter 2026 initial public offering, a move that would gauge how much confidence investors still place in the AI boom.
The AI research lab has started informal discussions with Wall Street banks and hired new finance leaders to prepare for the listing, per a report from . OpenAI’s representatives did not immediately reply to a comment request from . Though the company currently holds a $500 billion valuation, it has stated it does not expect to turn a profit until 2030.
OpenAI’s IPO timing also arrives as some investors are starting to doubt whether generative AI can generate returns that justify the trillions flowing into the sector. Despite the buzz around ChatGPT and similar tools, worries are growing that AI companies may struggle to earn enough from their technology to offset their enormous infrastructure expenses.
OpenAI may be weighing an IPO before year’s end partly to enter the public market ahead of its competitor Anthropic, according to the Journal’s reporting. Anthropic has quickly gained enterprise clients and told investors it might break even in 2028—two years earlier than OpenAI. The assumption is that this quicker path to profitability could make Anthropic more appealing to investors. But by going public first, OpenAI may be able to capture the bulk of pent-up demand for pure-play AI investments, particularly among retail investors.
To date, there have been relatively few pure-play AI companies in the public market—aside from an AI chip company and some so-called neocloud firms like CoreWeave. Most ways to invest in the AI boom involve hyperscalers, such as and , which have long-standing advertising, cloud, and software operations that their AI offerings are integrated with.
The report that OpenAI may be advancing its IPO to this year also emphasizes the almost unfathomably large sums AI companies are burning through as they rush to build massive data centers for training and running their AI models. OpenAI has reportedly pledged $1.4 trillion in data center spending by 2033. While the company has raised around $64 billion so far and holds a current valuation of about $500 billion, it is already in the middle of a major fundraising effort that could last through much of 2026, aiming to secure another $100 billion at an $830 billion valuation. An IPO would likely come on top of this funding round, not as a substitute.
OpenAI wouldn’t be the first unprofitable company to go public. , for example, stayed unprofitable for years after its 1997 IPO, posting losses for most of its early public existence as it prioritized growth and market share. However, unlike at the time of its IPO, OpenAI is burning through billions of dollars each year. OpenAI will face a $207 billion funding shortfall by 2030—the gap between its generated revenue and required spending—even if it earns up to $213 billion in revenue by then.
If OpenAI can successfully launch an IPO while burning billions and projecting losses through 2030, it signals the AI boom still has momentum. But if investors hesitate—if the IPO falters or gets repriced—it will indicate the market has finally hit its limit for prioritizing hype over financial fundamentals.
The talent competition may also be driving OpenAI toward an early IPO. An upcoming public offering could help OpenAI keep employees who might otherwise consider leaving; few would want to depart when their shares are about to vest and become tradable. The possibility of going public could also draw new talent during the pre-IPO period, as incoming hires might receive shares they can sell shortly after the listing.
There are risks to going public; it will require OpenAI to disclose far more about its financial health and cash burn. Shareholders will also expect quarterly results, something that could potentially complicate OpenAI’s goal of developing “safe, beneficial AI.” Even CEO Sam Altman has stated he’s not enthusiastic about the idea of being a public company’s CEO.
A public OpenAI may also have to reveal more about the risks linked to its products. The company is dealing with lawsuits and regulatory pressure over alleged caused by its chatbot.
Once public, OpenAI’s compensation packages may also become less appealing in some ways; new hires would receive stock options rather than pre-IPO equity, and those options may or may not be valuable depending on the company’s post-IPO performance and stock price trajectory.