OpenAI preparing confidential IPO filing, potentially valued at up to $1 trillion

OpenAI is preparing to file confidential IPO paperwork with the U.S. Securities and Exchange Commission, with a public listing potentially coming as soon as September. The company's last private funding round valued it at $852 billion, but it could be valued at up to $1 trillion by the time it goes public.

OpenAI remains deeply unprofitable and is burning cash on training models, serving them on cloud infrastructure, building data center capacity, and hiring AI talent. The S-1 filing will reveal exactly how much the company is spending and whether the burn rate is trending downward as revenues grow.

Microsoft owns roughly 27% of OpenAI's public benefit corporation structure, while the OpenAI Foundation owns 26%. A $1 trillion listing would value Microsoft's stake at roughly $270 billion before dilution and the nonprofit foundation's stake at roughly $260 billion.