OpenAI is leaning toward postponing its initial public offering until next year, three people involved in the company's deliberations told the New York Times, a reversal that highlights how quickly the mood has soured on AI's most hyped public debut. The ChatGPT maker had hired bankers and lawyers aiming for a listing as soon as the third or fourth quarter of this year. CEO Sam Altman pushed advisers to target a $1 trillion valuation, up from the company's last private valuation of $730 billion, according to the people, who spoke on condition of anonymity.
Two things derailed that timeline. SpaceX's record-breaking IPO this month raised more than $85 billion and hit a $1.77 trillion valuation on day one, but the stock has since slid sharply, closing at $153 on Thursday after touching $202 last week.
Bankers advising OpenAI warned that the same volatility could spook retail investors. At the same time, broader tech stocks have been dragging down indexes as Wall Street questions whether AI companies can deliver on their promises. The combination has pushed OpenAI's executives to dial back their most aggressive ambitions.
The New York Times first reported the shift, citing three sources inside the company's deliberations. OpenAI had previously signaled it was not looking to go public, but the WSJ reported earlier this year that the company planned to list by the end of 2026.
That plan now appears shelved. The company has not made a final decision, but the internal direction is clear: wait until 2027.
SpaceX's post-IPO slump is the cautionary tale. The stock's 24% drop from its peak in less than a month has given OpenAI's board a real-world data point on what happens when a highly anticipated AI-adjacent company hits the public market during a tech rout.
