OpenAI leans toward delaying IPO until 2027, NYT reports

OpenAI is considering postponing its IPO to 2027 after filing its S-1 with the SEC earlier this month, according to the New York Times.nytimes+1
Advisers warned that tech stock volatility — including SpaceX's sharp post-IPO sell-off — has narrowed the window for another mega-scale listing this year.investing+1
Altman reportedly refused to accept a valuation below $1 trillion, choosing to wait for markets to stabilize and financials to mature, per the Times.investing+1

OpenAI is leaning toward postponing its initial public offering until 2027, the New York Times reported on Thursday, citing three people involved in the company's internal deliberations. The delay marks a reversal for the artificial intelligence company, which had positioned itself for a public debut as early as the third quarter of this year after confidentially filing its S-1 with the SEC earlier this month.nytimes+3

A Trillion-Dollar Line in the Sand

Bankers advising OpenAI cautioned that recent tech stock volatility could dampen retail investor enthusiasm for another mega-scale listing, according to the Times report. Advisers presented CEO Sam Altman with two options: wait until 2027 to let the market stabilize and allow the company's financials to mature into a $1 trillion valuation, or accept a lower figure for a faster listing. A source in direct contact with Altman said he firmly rejected any compromise on the trillion-dollar target.investing

The decision comes as OpenAI's last private funding round valued the company between $730 billion and $852 billion. Reaching $1 trillion in public markets would represent a steep climb, particularly given audited financials that revealed a $38.5 billion net loss last year driven by massive spending on computing power and research.fortune+1

SpaceX's Turbulent Debut Casts a Shadow

SpaceX's record-breaking IPO on June 12 — which raised over $75 billion at a $1.77 trillion valuation — initially appeared to pave the way for OpenAI and rival Anthropic to follow with their own listings. But SpaceX shares have since tumbled sharply, falling as much as 34% from their peak and briefly dipping below their $150 opening price on Tuesday. The stock lost roughly 24% over three trading days last week, erasing hundreds of billions in market value.aljazeera+5

That retreat has rattled the broader technology sector. The Nasdaq Composite dropped alongside SpaceX during the sell-off, reinforcing adviser warnings that the window for another trillion-dollar debut may not open until next year.morningstar+1

Internal Tensions Over Timing

The potential delay also reflects internal disagreements at OpenAI. CFO Sarah Friar had privately suggested as early as this spring that a 2027 listing was more realistic, cautioning that the company was not yet ready to meet the rigorous reporting standards required of public companies. Meanwhile, Goldman Sachs The Goldman Sachs Group, Inc. and Morgan Stanley have been leading the IPO preparations. OpenAI's monthly revenue has reached $2 billion, but the gap between that growth and profitability remains a concern for public market investors.gizmodo+5

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