3 weeks ago
OpenAI files for IPO targeting up to $1 trillion valuation
OpenAI is the company that makes ChatGPT, a computer program that can talk to people, answer questions, and help with writing.
The company is growing very big and wants to sell shares of itself to the public, which is called an IPO.
It gave special papers to the government on May 22, 2026, to start this process.
The papers were secret at first, but they will be shown to everyone in August.
OpenAI says its business is growing incredibly fast, with more than 230 million people using ChatGPT every week.
But the company is also losing a lot of money, about $1.22 for every dollar it earns.
It is spending huge amounts on giant computer buildings called data centres to power ChatGPT.
Big banks like Goldman Sachs and Morgan Stanley are helping the company sell its shares.
Some investors are worried that spending so much on AI might not pay off.
That is why everyone wants to see the full official papers before deciding whether to buy shares.
OpenAI confidentially filed its S-1 prospectus with the US Securities and Exchange Commission on May 22, 2026, with a listing targeted as early as September.
The IPO's targeted valuation ranges from $852 billion to $1 trillion, with Goldman Sachs and Morgan Stanley leading the deal.
OpenAI generated close to $6 billion in Q1 revenue, a roughly $25 billion annualized run rate, while reporting a negative 122% non-GAAP operating margin.
The company has raised projected compute spending to approximately $750 billion through 2030, including Oracle, Amazon Web Services, and Microsoft Azure commitments.
More than $1.3 trillion was erased from semiconductor market values in late July as investors questioned whether AI infrastructure spending will produce adequate returns.
- Who
- OpenAI, including chief financial officer Sarah Friar, with Goldman Sachs and Morgan Stanley leading the IPO deal.
- What
- OpenAI confidentially filed its S-1 prospectus with the US SEC for a public listing targeting a valuation between $852 billion and $1 trillion.
- Where
- United States — filed with the US Securities and Exchange Commission, with major new data centre projects planned in Effingham County, Georgia, and Ohio.
- When
- The filing was made confidentially on May 22, 2026; the full prospectus is expected to become public mid-to-late August, with the listing targeted for as early as September.
- Why
- To take the company public and raise capital as it funds roughly $750 billion in projected compute spending through 2030 despite ongoing losses.
Market Skeptics
Company Optimists
AI infrastructure spending returns
Market Skeptics
Investors question whether massive AI infrastructure spending will produce adequate returns; more than $1.3 trillion was erased from semiconductor market values in late July, and AI-related securities class actions account for nearly three-quarters of all alleged investor losses this year.
Company Optimists
OpenAI's revenue is scaling faster than almost any company in history, with a roughly $25 billion annualized run rate and more than 230 million weekly ChatGPT users, justifying continued large-scale investment.
Unprofitability ahead of IPO
Market Skeptics
OpenAI's negative 122% non-GAAP operating margin and CFO Sarah Friar's private concerns about honouring computing contracts if growth slows signal significant financial risk for public investors.
Company Optimists
Losses at scale are not unusual for tech companies going public — Amazon and Uber both listed while unprofitable — and the audited prospectus will give investors reliable data to evaluate the business.
Key facts
- Company
- OpenAI
- Filing
- S-1 prospectus with US Securities and Exchange Commission
- Filing date
- May 22, 2026
- Target valuation
- $852 billion to $1 trillion
- Q1 revenue
- Close to $6 billion (about $25 billion annualized)
- Q1 non-GAAP operating margin
- Negative 122%
- Weekly ChatGPT users
- More than 230 million
- Projected compute spending through 2030
- Approximately $750 billion
- Lead underwriters
- Goldman Sachs and Morgan Stanley
- Chief financial officer
- Sarah Friar
Sources
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