Key Takeaways
- OpenAI is positioned to submit a confidential IPO filing by Friday, May 23, with plans for a September market entry
- Major investment banks Goldman Sachs and Morgan Stanley are spearheading the offering preparations
- Following a massive $122 billion funding round in March, the artificial intelligence firm achieved an $852 billion valuation
- This week saw the dismissal of Elon Musk’s legal challenge against OpenAI by a federal jury, removing a significant barrier
- The company has fallen short of anticipated revenue and user expansion benchmarks, according to internal reports
The artificial intelligence powerhouse responsible for ChatGPT is positioning itself to submit a confidential initial public offering filing as early as this Friday, The Wall Street Journal reports.
Goldman Sachs and Morgan Stanley are collaborating with the organization on filing documentation. CEO Sam Altman has set an ambitious timeline, aiming for the company to debut on public exchanges by September 2026.
Following the completion of a historic $122 billion private capital raise in March 2026—the most substantial private funding round ever recorded—OpenAI secured an $852 billion valuation. Industry analysts have speculated that the company might pursue a $1 trillion market capitalization once publicly traded.
An OpenAI representative stated to The Wall Street Journal: “As part of normal governance, we regularly evaluate a range of strategic options. Our focus remains on execution.”
Major Legal Challenge Resolved
The timing of this IPO preparation follows closely on the heels of OpenAI securing a courtroom victory against a founding member. Earlier this week, a federal jury sided against Elon Musk, throwing out his legal complaint due to statute of limitations issues.
Musk’s lawsuit sought $150 billion in damages. His complaint centered on allegations that OpenAI inappropriately transitioned from its nonprofit origins to a commercial enterprise following his $38 million in contributions between 2015 and 2017.
The verdict eliminates a substantial legal uncertainty that had loomed over the enterprise. Musk has indicated his intention to pursue an appeal.
Revenue Growth Shows Mixed Results
Chief Financial Officer Sarah Friar announced in January that OpenAI achieved a $20 billion annualized revenue run rate during 2025, representing a significant jump from the previous year’s $6 billion.
Yet beneath this growth narrative, the organization has struggled to meet internally projected benchmarks for both revenue generation and user acquisition. Friar cautioned leadership that slower-than-expected revenue expansion might constrain the company’s capacity to fulfill substantial data center obligations.
The artificial intelligence company has committed $1.4 trillion across the coming seven to eight years for data center infrastructure development. Additionally, semiconductor and data center expenditures totaling $600 billion are planned over the next half-decade.
Current user engagement stands at 700 million active weekly participants as of early 2026.
The pathway to sustained profitability remains uncertain for OpenAI. Similar to other major AI companies entering public markets, analysts anticipate the stock will command premium valuation multiples.
Intensifying Competitive Landscape
Competitor Anthropic reported $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 assessment.
SpaceX has similarly begun preparing its IPO documentation. Notably, Goldman Sachs—the identical financial institution advising OpenAI—is also managing that transaction.
Public offering activity throughout the technology sector has experienced renewed momentum. AI chip manufacturer Cerebras recently completed its market debut, experiencing substantial share price appreciation following its listing.
