Goldman Sachs and Morgan Stanley to Lead OpenAI's IPO Amid $852B Valuation

OpenAI is set to submit a confidential IPO prospectus soon, aiming for a stock market debut in September 2026, sources reveal. The company has engaged Goldman Sachs and Morgan Stanley to manage the offering and is closely watching market conditions before proceeding. Currently valued privately at $852 billion, analysts anticipate that the public listing could elevate OpenAI’s market capitalization beyond $1 trillion.

Competitive IPO Landscape

Timing plays a critical role as OpenAI faces competition from rivals planning their own public offerings. Anthropic is targeting an October IPO, while SpaceX plans to go public on June 12 with a valuation estimated at $1.75 trillion. According to CNBC on May 20, prediction market Kalshi now estimates an 83% chance that OpenAI will list before Anthropic, a significant rise from 32% prior to the IPO filing news. Wedbush analyst Dan Ives emphasized the importance of being first to enter public markets.

Legal and Investor Context

OpenAI has not officially announced its IPO intentions. A spokesperson stated the company "regularly evaluates various strategic options" but remains focused on product development. Notable investors include Microsoft and NVIDIA. On May 18, a federal jury unanimously dismissed Elon Musk’s lawsuit challenging OpenAI’s shift from a nonprofit to a for-profit entity. The dismissal was based on the statute of limitations, as Musk filed beyond the three-year period. The jury did not rule on the core "charity looting" claim, which may resurface during IPO disclosures.

Financial Outlook and Internal Dynamics

The company’s financials reveal significant contrasts. In 2024, OpenAI generated $3.7 billion in revenue but posted a $5 billion loss. Projections from CMC Markets on May 21 indicate losses could reach $14 billion in 2026, with a funding gap of $207 billion expected through 2030. Profitability is not anticipated before 2030. CEO Sam Altman has outlined plans to invest up to $600 billion in computing infrastructure by 2030, betting on scale to eventually yield sustainable profits.

Reports highlight internal disagreements, with Altman advocating for an accelerated timeline, while CFO Sarah Friar urges caution, signaling potential execution risks ahead of the IPO roadshow. For ChatGPT users, the IPO will not alter the product but will require OpenAI to provide greater transparency regarding pricing, its partnership with Microsoft, and data practices than ever before.