• Sam Altman reportedly expects OpenAI to pursue an IPO within the next year, according to people familiar with the matter.
  • The AI lab, backed by Microsoft (MSFT), has seen rapid revenue growth but continues to face high cash burn from R&D and infrastructure costs.
  • A public listing would increase scrutiny on profitability and governance, though no formal timeline has been announced.

IPO Chatter Intensifies

OpenAI CEO Sam Altman has told some investors that the company could go public as soon as next year, according to sources familiar with internal discussions. The news signals a potential shift in strategy for the AI research lab, which has long downplayed near-term IPO plans. Altman’s remarks, reported by The Information, suggest mounting pressure to provide a liquidity event for employees and early backers.

The company, which operates ChatGPT and enterprise AI services, has been scaling aggressively. Revenue has accelerated to multi-billion-dollar quarterly levels, but operating expenses—driven by massive compute costs and talent—have kept profitability elusive. OpenAI’s cash burn remains substantial, though it has secured significant funding from Microsoft and other investors.

Road to Public Markets

A public listing would force OpenAI to open its books and face quarterly earnings scrutiny. The company has been reshuffling leadership and tightening governance to prepare for a more structured corporate future. Still, Altman has previously cautioned that an IPO is not imminent, and the company has not filed any confidential paperwork with regulators.

“We’re not in a rush,” Altman said at a conference in June, though he acknowledged that going public is a “natural eventual path.” The new timeline, if accurate, would represent a major acceleration.

Spokespeople for OpenAI declined to comment on the IPO timeline. The company’s investors include Microsoft, Khosla Ventures, and Thrive Capital.

Implications for AI Sector

An OpenAI IPO would be one of the most anticipated listings in tech, potentially valuing the company at hundreds of billions of dollars. It could also galvanize other AI startups to pursue public offerings, reshaping the competitive landscape. Analysts caution that without a clear path to sustainable profits, public market investors may balk at the valuation.

Correction: An earlier version of this article misstated the timeline of Altman’s comments. This version has been updated.