OpenAI lays groundwork for IPO targeting up to $1T valuation, possible 2027 listing
Oct 30, 2025
Key Points
- OpenAI is preparing for an IPO targeting a $1 trillion valuation, with CFO Sarah Fryer aiming for a 2027 listing and some advisers suggesting late 2026.
- The company is exploring a fundraise between $60 billion and higher, though timing remains uncertain pending visibility into near-term product performance.
- OpenAI expects to post tens of billions in losses at IPO despite rapid growth, creating valuation comparables described as "absolutely wild" against profitable peers like Meta.
Summary
OpenAI is laying groundwork for an initial public offering targeting a valuation as high as $1 trillion, according to Reuters reporting based on conversations with three people familiar with the matter. The company is exploring raising between $60 billion and more, with CFO Sarah Fryer telling associates it is aiming for a 2027 listing. Some advisers have suggested the IPO could come as early as late 2026.
Timing remains uncertain. Sources cautioned that talks are early and plans including valuation targets, fundraise amounts, and listing dates could shift depending on business growth and market conditions. OpenAI will likely want visibility into near-term product performance, including the commercial impact of its Sora video generation tool, before finalizing IPO readiness.
The valuation creates a striking comparison point. When OpenAI files its S-1, Meta will likely serve as a public comp—a business at significant scale, profitable, and still growing rapidly. OpenAI is expected to be losing tens of billions of dollars at IPO, despite a powerful growth narrative. The gap between the two companies' financial profiles at comparable moments suggests the IPO comparables will be absolutely wild.