OpenAI is preparing for a potential initial public offering that could reach a valuation of $1 trillion, potentially making it among the largest IPOs in history, according to reports.

The company is reportedly considering submitting filings to securities regulators potentially by the latter half of 2026, reports claim.

During early-stage discussions, OpenAI has explored raising approximately $60 billion at the minimum, with the possibility of securing additional funding, these individuals noted.

They emphasized that these conversations remain in preliminary stages and that plans, including financial targets and timeline, may shift based on company performance and market dynamics.

Sources report that Chief Financial Officer Sarah Friar has informed certain colleagues that the organization targets a 2027 public debut. However, some consultants believe the timeline could be accelerated to late 2026.

OpenAI states that going public is not currently their primary objective and therefore cannot establish a definitive timeline. The company emphasizes its commitment to creating a sustainable business model while pursuing its goal of ensuring artificial general intelligence benefits all people.

These IPO developments reflect increased momentum within the organization behind ChatGPT to access public capital markets following the completion of a complicated corporate reorganization that decreased its dependence on Microsoft.

Going public would provide more streamlined fundraising opportunities and allow for larger acquisitions through public shares, supporting CEO Sam Altman's vision to invest trillions in artificial intelligence infrastructure.

Despite projections showing annual revenue could approach $20 billion by the end of the year, the $500 billion valued company continues to experience growing financial losses.

OpenAI was established as a nonprofit organization in 2015. Several years afterward, the organization restructured itself once more, allowing the nonprofit entity to maintain supervision and authority over its commercial division. The primary objective of the nonprofit was to guarantee that OpenAI would create artificial intelligence technology in a secure manner, instead of focusing on financial gains like conventional corporations.

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This week witnessed another transformation of OpenAI's structure. While it remains under nonprofit control, now termed the OpenAI Foundation, the nonprofit holds a 26 percent ownership in OpenAI Group along with a warrant for acquiring extra shares upon reaching specific benchmarks. This modification positions the nonprofit as a major participant in OpenAI's economic achievements.

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A prosperous public offering would represent a substantial victory for investors including SoftBank, Thrive Capital, and Abu Dhabi's MGX. Microsoft, among its largest supporters, currently possesses approximately 27 percent of the organization following a $13 billion investment.

These discussions occur while artificial intelligence fuels growth in public markets. Earlier this year, AI cloud enterprise CoreWeave became publicly traded with a $23 billion valuation and has approximately tripled in value since then.

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Nvidia achieved the milestone of becoming the first corporation to attain a $5 trillion market capitalization, driven by a rally that has established its central position in the worldwide AI expansion.