• OpenAI CEO Sam Altman expresses openness to a public listing, with potential IPO preparations eyed for 2026 or 2027 amid massive funding rounds and revised spending plans.
  • The company, valued potentially at $730 billion pre-money, generated $13.1 billion in revenue in 2025 but burned $8 billion in cash, projecting $100 billion by 2028 and over $280 billion by 2030.
  • Recent conversion to a public benefit corporation structure and high compute costs, with spending plans scaled back from $1.4 trillion to around $600 billion by 2030, shape its path to profitability and market competition.

Sam Altman, CEO of OpenAI, has signaled a willingness to take the company public when conditions align, according to people familiar with the matter. This comes as reports suggest IPO preparations could ramp up in 2026 or 2027, coinciding with ongoing talks for a funding round exceeding $100 billion from investors like Nvidia (NVDA), SoftBank, and Amazon (AMZN). The move follows OpenAI's recent conversion to a public benefit corporation structure, a strategic shift designed to facilitate a mega-IPO, sources say.

Financial performance underscores both ambition and challenge. In 2025, OpenAI posted $13.1 billion in revenue, surpassing its $10 billion target, but cash burn hit $8 billion, with losses including a reported $12 billion last quarter. The company projects revenue to reach $100 billion by 2028 and over $280 billion by 2030, split evenly between consumer and enterprise segments. However, high compute costs drive significant expenditures, with cash burn projected at $115 billion by 2029 and around $600 billion directly by 2030—a revision from earlier estimates of $1.4 trillion that has reassured some backers.

Market dynamics add complexity. OpenAI's ChatGPT boasts over 900 million weekly active users, but competition intensifies from rivals like Anthropic, which eyes a year-end IPO, and xAI's merger with SpaceX. Altman has warned that "someone will lose a phenomenal amount" in the AI race, reflecting investor mix of optimism and skepticism. Ethan Choi of Khosla Ventures, for instance, trusts Altman's vision, drawing parallels to Tesla (TSLA)'s Robotaxi hype, while others question profitability amid margin pressures.

Infrastructure strains loom large. OpenAI's plans for trillions in data center spending, including over 30 gigawatts of capacity, consume nearly a third of 2025 industry usage, impacting partners like Microsoft (MSFT), which saw a $440 billion market value drop partly tied to reliance on OpenAI. Efforts to streamline operations include a recent "Code Red" memo from Altman refocusing on core ChatGPT improvements and the appointment of Fidji Simo as CEO of applications for expansion.

Looking ahead, short-term focus centers on closing the $100 billion-plus funding round and potential 2026 IPO to access capital amid scrutiny on losses. Long-term, a trillion-dollar valuation IPO seems plausible if revenue targets are met, but risks include market share erosion without innovation edge. As one industry insider put it, "It's a high-stakes game where compute efficiency and beating rivals will dictate success." OpenAI declined to comment on specific timing, but Altman's openness hints at a pivotal shift for the generative AI leader.