OpenAI is reportedly considering postponing its initial public offering (IPO) from later this year to 2027, according to sources cited by The New York Times. This shift comes as the public tech market experiences significant volatility, compounded by recent declines in Elon Musk's SpaceX stock following its record IPO. OpenAI had initially aimed for a public listing in the third or fourth quarter of 2023, with CEO Sam Altman seeking a valuation of $1 trillion. However, advisers have cautioned that the current market conditions may not support such a lofty figure, leading to internal discussions about the timing and valuation of the IPO.
The company confirmed earlier this month that it filed confidential paperwork with the Securities and Exchange Commission (SEC) to go public but has not committed to a specific timeline. While OpenAI had previously been optimistic about a September listing, concerns from employees, including CFO Sarah Friar, about the company's financial outlook for the year have contributed to the hesitation. OpenAI's most recent valuation stands at $852 billion, with reported revenues of approximately $13 billion last year against a net loss of $21 billion. The company faces a daunting projected expenditure of $600 billion on computing and hardware through 2030.
In light of growing skepticism regarding the profitability of AI companies, OpenAI is exploring new revenue streams, such as integrating advertisements into its ChatGPT platform and forming partnerships with e-commerce giants like Shopify and Stripe. As the company navigates these challenges, it remains committed to achieving its ambitious valuation goals, despite the current market uncertainties.