Microsoft, OpenAI reach new deal valuing OpenAI at $500 billion
People familiar with the discussions said OpenAI has considered raising at least $60 billion, with the final amount likely to be higher. Chief Financial Officer Sarah Friar reportedly told some associates that the company is targeting a 2027 listing, while others close to the matter believe the offering could occur as soon as late 2026.
An OpenAI spokesperson commented: “An IPO is not our focus, so we could not possibly have set a date. We are building a durable business and advancing our mission so everyone benefits from AGI.” The spokesperson’s remarks emphasize that the company’s main objective remains the safe and responsible advancement of artificial general intelligence rather than short-term financial goals.
The preparations come as OpenAI has completed a major corporate restructuring that reduces its dependence on Microsoft (MSFT.O). Going public would allow the company to raise capital more efficiently and pursue larger acquisitions using public stock. It would also help support CEO Sam Altman’s long-term plan to invest heavily in AI infrastructure. OpenAI’s annualized revenue run rate is expected to reach about $20 billion by the end of this year, though losses have also increased as the company continues to expand.
During a livestream on Tuesday, Altman addressed the topic of a public listing, saying: “I think it’s fair to say it is the most likely path for us, given the capital needs that we’ll have.”
Founded in 2015 as a nonprofit, OpenAI restructured in later years to create a capped-profit model, ensuring that the nonprofit arm would maintain control over the for-profit entity. This week, OpenAI further reorganized under a new structure where the OpenAI Foundation now holds a 26% stake in OpenAI Group and retains the right to receive additional shares if performance milestones are achieved. The foundation’s significant ownership ensures that the company’s mission remains aligned with long-term societal goals.
Major investors include SoftBank, Thrive Capital, and Abu Dhabi’s MGX, while Microsoft holds about 27% after investing $13 billion. The discussions about an IPO come amid strong investor interest in AI-related companies. Earlier this year, CoreWeave went public with a $23 billion valuation, and on Wednesday, Nvidia became the first company to reach a $5 trillion market capitalization, reinforcing the sector’s rapid growth.
The Wall Street Journal was the first to report that OpenAI could go public as early as 2027.
