Summary:
Discover the latest updates on the OpenAI IPO release window. Get the full breakdown of its IPO expectations, valuation predictions and implications.
As of April 2025, OpenAI has not officially announced an Initial Public Offering (IPO). The company continues to operate as a private entity, with significant investments from firms like Microsoft and SoftBank. While there is speculation about a potential IPO in the future, no concrete plans have been disclosed.
However, recent developments suggest a trajectory that could lead to a public offering. In January 2024, OpenAI transitioned into a Delaware Public Benefit Corporation, a structure that balances profit motives with societal benefits, potentially paving the way for public investment.
Founded in 2015, OpenAI has rapidly evolved from a research lab into a leading AI company for developing advanced language models like GPT-4 and GPT-5. Its collaboration with Microsoft, which has invested approximately $13 billion, underscores OpenAI's influence and the strategic importance of its technologies in the broader AI ecosystem.
OpenAI's valuation has substantially grown, reflecting investor confidence in its technologies and market potential. In January 2024, the company value was at approximately $157 billion following a funding round led by Thrive Capital and Microsoft. By April 2025, OpenAI secured an additional $40 billion in funding, elevating its post-money valuation to $300 billion, marking the largest private technology deal on record. This surge in valuation underscores the market's recognition of OpenAI's pivotal role in the AI sector.
Financially, OpenAI reported an annual recurring revenue (ARR) of $4 billion as of September 2024, with projections indicating $11.6 billion in revenue for the following year. Despite these impressive figures, the company anticipates operating losses, with forecasts suggesting cumulative losses of $44 billion through 2028. These projections highlight the capital-intensive nature of AI development and the long-term investment horizon required for profitability.
Estimating OpenAI's potential value in the event of an IPO involves analysing its current market presence, partnerships, and growth trajectory. As of 2025, OpenAI is one of the most valuable artificial intelligence companies, primarily due to its foundational role in developing large language models like ChatGPT and its integration into Microsoft's Azure AI ecosystem.
In its most recent funding rounds, OpenAI has reportedly been valued between $80 billion and $100 billion, depending on the structure of the investment and the class of shares involved. If OpenAI were to go public in the near future, it could potentially target an IPO valuation in the same range or even higher, depending on market conditions and investor sentiment at the time of the offering.
This valuation is supported by OpenAI's revenue-generating products and services, including ChatGPT subscriptions, API enterprise usage, and licensing partnerships with tech giants. In addition, the ongoing integration of OpenAI technology across Microsoft's suite of products provides a recurring stream of enterprise-level income.
Market analysts speculate that if OpenAI continues to lead advancements in generative AI, a post-IPO market capitalisation of $100 billion or more is plausible. However, this would depend heavily on investor appetite, global tech sector performance, regulatory clarity around AI, and competition from firms like Anthropic, Google DeepMind, and others.
An OpenAI IPO would have far-reaching implications for the AI industry. As a publicly traded entity, OpenAI would gain access to broader capital markets, enabling accelerated research and development, infrastructure expansion, and potential acquisitions. This influx of capital could catalyse innovation, intensify competition, and set new benchmarks for AI capabilities.
Moreover, OpenAI's public listing could influence investor sentiment, attracting increased funding to the AI sector and encouraging other AI-focused companies to consider IPOs. This shift could lead to a more dynamic and competitive market, fostering advancements in AI applications across various industries.
In conclusion, while OpenAI has not officially announced plans for an IPO, its structural changes, escalating valuations, and strategic partnerships suggest a trajectory toward public markets. However, should OpenAI pursue an IPO, it could be one of the largest and most anticipated tech listings, potentially commanding a valuation that places it among the top AI-focused companies globally.
Until then, direct investment in OpenAI remains limited to private funding rounds and secondary markets accessible to accredited investors.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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