Sam Altman’s OpenAI Targets Up To $1 Trillion Valuation In Historic IPO After Major Restructuring And California Approval: Report – Microsoft (NASDAQ:MSFT), SoftBank Group (OTC:SFTBF)

OpenAI is reportedly laying the groundwork for a potential initial public offering that could value the ChatGPT maker at up to $1 trillion, marking what could become one of the largest IPOs in history.

OpenAI Reportedly Weighs 2026 Or 2027 IPO Amid Soaring AI Momentum

OpenAI is exploring the possibility of filing with securities regulators as early as the second half of 2026, reported Reuters, citing people familiar with the matter.

In early discussions, the company has reportedly considered targeting a valuation starting around $60 billion, potentially higher.

However, they cautioned that the talks remain preliminary and that both the timing and figures could shift based on the company’s growth trajectory and overall market conditions.

Some insiders suggest Chief Financial Officer Sarah Friar has indicated a 2027 listing target, though advisers say it could happen sooner depending on market conditions, the report said.

While the company has not confirmed a timeline, an OpenAI spokesperson told the publication, “An IPO is not our focus … We are building a durable business and advancing our mission so everyone benefits from AGI.”

OpenAI did not immediately respond to Benzinga’s request for comments.

See Also: Microsoft Q1 Preview: With 2 ‘Near-Term Monopolies,’ Analyst Says Outperformance To Continue

Restructuring Clears Path For Public Markets

The reported IPO plans follow a major corporate overhaul that reduces OpenAI’s reliance on Microsoft Corporation (NASDAQ:MSFT). The AI startup is still controlled by a nonprofit entity, now known as the OpenAI Foundation.

The foundation holds a 26% stake in the company and could earn more shares if certain milestones are met.

A successful public offering would represent a significant victory for investors, including SoftBank Group (OTC:SFTBF) (OTC:SFTBY), Thrive Capital and Abu Dhabi’s MGX.

Microsoft — one of OpenAI’s largest supporters — currently holds roughly 27% of the company following its $13 billion investment.

This week, California Attorney General Rob Bonta approved the company’s recapitalization plan after months of review. CEO Sam Altman praised the resolution on X, writing, “California is my home, and I love it here.”

OpenAI’s AI Ambitions And Market Context

OpenAI’s annualized revenue run rate is expected to hit $20 billion by year-end.

Altman has acknowledged the company’s massive capital needs, saying during a livestream on Tuesday. He spoke about the potential of going public, saying, “I think it’s fair to say it is the most likely path for us, given the capital needs that we’ll have.”

Satya Nadella Highlights Strengthened OpenAI Partnership During Q1 Call

On Wednesday, OpenAI-backer Microsoft reported its first-quarter financial results. During the earnings call, CEO Satya Nadella said that the new agreement with OpenAI gives Microsoft “more certainty” about intellectual property and how AGI is defined.

“This is a great milestone for both companies, and we continue to benefit mutually from each other’s growth across multiple dimensions,” Nadella stated earlier during the call. “Already, we have roughly 10x’d our investment, and OpenAI has contracted an incremental $250 billion of Azure services.”

Microsoft posted first-quarter revenue of $77.7 billion, marking an 18% year-over-year increase and surpassing the Street consensus estimate of $75.3 billion, according to Benzinga Pro data.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.