OpenAI may push IPO to next year: What’s behind the delay?
OpenAI is trending toward delaying its initial public offering (IPO) until next year, rather than listing later this year. New York Times It was reported by quoting people familiar with the matter. The move comes amid SpaceX’s rocky start and a broader decline in tech stocks.
According to the report, the ChatGPT maker had hired bankers and lawyers to prepare for the IPO as early as the third or fourth quarter of this year. Sources also told the news publication that CEO Sam Altman has asked advisors to explore ways to provide a $1 trillion valuation for OpenAI, significantly higher than its last private valuation of $730 billion.
What prompted OpenAI to delay its IPO?
A number of recent developments have prompted OpenAI to reconsider its IPO timeline. Among the most important factors is the poor post-IPO performance of SpaceX, whose shares have fallen sharply since its record-breaking IPO.
From artificial intelligence to rockets, Elon Musk’s company raised more than $85 billion in its debut and reached a valuation of $1.77 trillion. But since then, SpaceX’s shares have fallen to $153 by the end of the trading day on Thursday, after reaching $202 last week.
Global markets have also been volatile in recent weeks, with technology stocks dragging indexes lower as investors question whether AI companies will deliver on their promises and justify their high valuations. This factor also influenced OpenAI’s plan for a public listing this year.
Two of the people involved told the publication that this led company advisors to warn in meetings with the company last week that they might not get much interest from retail investors for their shares.
IPO delay could disappoint Wall Street
OpenAI’s decision to slow down its IPO plans could disappoint Wall Street and Silicon Valley, which were hoping for one of the biggest IPOs in recent years. The launch of OpenAI and its rival Anthropic is expected to create a wave of generational wealth.
The company has not committed to a timeline for going public, although OpenAI said earlier this month it had filed confidential paperwork with U.S. securities regulators to begin the IPO process.
A $1 trillion valuation in the public market would be staggering for OpenAI and would exceed Walmart’s market cap. The publication noted that this would be a turning point for the startup, especially considering it is not believed to be making a profit and is spending aggressively on new data centers.
An OpenAI spokesperson declined to comment on the publication’s inquiries beyond the company’s previous statement.
GPT 5.6 AI rollout delay
In another development, OpenAI has reportedly delayed the rollout of its upcoming GPT 5.6 AI model after the US government asked the company to make it available to a limited number of trusted partners first.
CEO Altman told employees during an internal meeting that the Trump administration had requested a phased launch for the GPT 5.6 model. Bloomberg News reported. The OpenAI executive reportedly told employees that the US government is becoming more concerned about the capabilities of advanced AI models.
