OpenAI has stated it isn’t planning to go public this year, but many senior Wall Street executives anticipate that it could happen in the first quarter of 2027, according to reports.
Led by Sam Altman, OpenAI has quickly dismissed speculation about an imminent IPO, especially since its competitor Anthropic has recently filed its S-1, setting the stage for a deal expected in late November.
Interestingly, while both Altman and Anthropic CEO Dario Amodei are known for voicing concerns about potential dangers of AI, that hasn’t stopped Amodei from pursuing a public offering that might value his company up to $2 trillion, potentially eclipsing SpaceX’s record IPO.
Altman’s caution may stem from fears regarding uncontrolled AI systems that could lead to catastrophic consequences, yet sources inform that Wall Street executives are more focused on his actions than his words. Instead of easing up on AI, Altman has been involved in private fundraising, reportedly bringing in around $300 billion, which would value OpenAI at about $1 trillion, according to insiders.
In the meantime, finance experts have warned Altman about a closing IPO window due to rising concerns about an AI bubble and increasing competition for investor capital—not just from Anthropic’s forthcoming IPO, but also from Meta’s anticipated significant stock sale, as previously reported.
One Wall Street CEO expressed certainty about OpenAI’s IPO likely occurring “probably in the first quarter” of 2027. An OpenAI representative did not comment on the timeline mentioned in this report, but previously stated that the company has “consistently said” it hasn’t set an IPO timeline and emphasized safety as the priority, reiterating that it will not go public this year.
AI is viewed as a revolutionary technology that could influence various sectors like business, health care, and defense. However, there are increasing worries that significant players in the market are expanding their budgets and debts to unsustainable levels.
A range of domestic and international companies are vying for dominance in the AI space. Yet, Wall Street financiers have been encouraging leading AI firms to enter the market before a potential downturn occurs. SpaceX was the first to launch an IPO, raking in $86 billion back in June, and now Meta plans to raise $95 billion across multiple stock rounds, in addition to Anthropic’s IPO, the size of which remains undefined.
While Anthropic is aiming for a valuation of $2 trillion, and OpenAI’s recent fundraising suggests a $1 trillion valuation, the latter may see a higher market value if the AI sector sees renewed vigor as we approach a new year and following Anthropic’s successful offer.
Some individuals close to Amodei claim his recent hesitance regarding the IPO timeline may relate less to market worries and more to supply chain concerns due to the Defense Department’s ban on using its AI technologies for military applications. This ban arose after a public disagreement between Amodei and Defense Secretary Pete Hegseth regarding access to its AI models.
Anthropic is currently mounting a legal challenge against this order, and its S-1 filing indicates that, despite losses, the company’s revenue growth is robust as it aims to lead in corporate and general AI applications.
On the other hand, OpenAI appears to have a smoother path for an IPO, facing none of the complications with the Pentagon that Anthropic is currently navigating.
