Key Highlights
- OpenAI may submit confidential IPO documents by Friday, May 23, with plans for a September 2026 market debut
- Investment banking giants Goldman Sachs and Morgan Stanley are coordinating the filing process
- The artificial intelligence firm achieved an $852 billion valuation following a historic $122 billion funding round in March
- Elon Musk’s $150 billion lawsuit against the company was dismissed by a jury this week, removing a significant legal barrier
- Reports indicate OpenAI has fallen short of internal projections for revenue and user expansion, prompting financial scrutiny
The artificial intelligence powerhouse behind ChatGPT is moving toward a confidential initial public offering filing that could arrive as early as this Friday, based on reporting from The Wall Street Journal.
🚨HUGE: OpenAI confirms it is preparing to file for IPO in the coming weeks, per Reuters.
This comes after:
1. $1.5B private equity joint venture talks with Vista/Thrive
2. Briefing the Feds and Five Eyes on new cyber products
3. CFO confirming retail investors will get IPO… pic.twitter.com/QLHqLAPCgF— Coin Bureau (@coinbureau) May 21, 2026
Two Wall Street heavyweights—Goldman Sachs and Morgan Stanley—are guiding the filing process. CEO Sam Altman has set an ambitious timeline, aiming to have OpenAI trading on public exchanges by September 2026.
The company’s current $852 billion valuation stems from a March 2026 funding round that brought in $122 billion, setting a record as the largest private capital raise ever recorded. Industry observers have speculated that a public offering could push OpenAI’s valuation past the $1 trillion threshold.
A company representative told The Wall Street Journal: “As part of normal governance, we regularly evaluate a range of strategic options. Our focus remains on execution.”
Musk Lawsuit Dismissed, Clearing Path Forward
The timing of this IPO preparation follows closely on the heels of a significant legal victory for OpenAI. Earlier this week, a federal jury sided with the company in a dispute brought by co-founder Elon Musk, ruling that his claims were filed beyond acceptable time limits.
Musk’s lawsuit sought $150 billion in damages. His complaint centered on allegations that OpenAI improperly transformed from its original nonprofit structure to a for-profit entity after receiving $38 million in donations from him during 2015-2017.
This jury verdict eliminates a substantial legal uncertainty that had shadowed the company’s future plans. Musk has indicated his intention to pursue an appeal.
Revenue Growth Strong, But Challenges Remain
CFO Sarah Friar announced in January that OpenAI’s annualized revenue run rate hit $20 billion during 2025, representing a substantial jump from the previous year’s $6 billion figure.
However, behind this impressive headline growth lie concerning details. Sources suggest the company has consistently underperformed against its own internal benchmarks for both revenue generation and user acquisition. Friar reportedly cautioned internal teams that slower-than-expected revenue expansion could jeopardize the company’s capacity to fulfill massive data center obligations.
The AI company has pledged $1.4 trillion over seven to eight years toward data center infrastructure development. An additional $600 billion commitment covers semiconductor procurement and data center construction over the next five years.
OpenAI reported 700 million weekly active users in early 2026.
Questions persist about the company’s route to sustainable profitability. Similar to other major AI companies entering public markets, OpenAI is anticipated to command premium valuation multiples despite uncertain earnings trajectories.
Intensifying Competitive Landscape
Competitor Anthropic revealed $30 billion in annualized revenue during April 2026 and is currently pursuing additional funding that could establish a $900 billion valuation—potentially exceeding OpenAI’s most recent private market valuation.
Separately, SpaceX is advancing its own IPO preparations. Notably, Goldman Sachs is simultaneously coordinating that company’s public offering alongside OpenAI’s.
The broader technology sector has witnessed accelerating IPO momentum. AI chip manufacturer Cerebras recently completed its public debut with strong post-listing performance gains.
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