OpenAI Delays IPO to 2027 as $1 Trillion Valuation Target Faces Market Hurdles

OpenAI is leaning toward holding off its initial public offering until 2027, following warnings from advisers that co-founder and CEO Sam Altman's desired $1 trillion valuation may not be attainable in the current market climate, according to multiple sources familiar with the matter. The decision would mark a significant shift for the AI company, which had previously been expected to go public as early as 2026.

The New York Times reported on June 25, 2026, that OpenAI's advisers are urging Altman to slow the timeline, citing recent volatility in shares of SpaceX, which has faced market turbulence after its own high-profile moves. The AI sector has seen rapid shifts in investor sentiment over the past year, making precise valuation targets harder to defend.

Advisers Warn Against a $1 Trillion Benchmark

Altman had publicly floated a $1 trillion valuation for OpenAI, a figure that would make it one of the most valuable companies in the world, surpassing most tech giants. However, investment bankers and internal advisors have cautioned that such a price could deter institutional buyers, especially given the uncertainty around AI monetization timelines and regulatory scrutiny.

• SpaceX's stock volatility has become a cautionary tale for high-profile tech companies seeking public listings.
• OpenAI faces ongoing antitrust investigations in both the U.S. and Europe over its partnerships with Microsoft.
• AI model costs remain high, with training expenses for new generations estimated in the billions.
• IPO market conditions have been choppy in 2026, with several large tech debuts struggling to maintain their opening prices.
• The company's internal structure, including its capped-profit model, complicates traditional valuation approaches.

Implications for the AI Landscape

A delayed IPO gives OpenAI more time to demonstrate sustainable revenue growth and navigate regulatory hurdles. The company recently launched its next-generation model, GPT-6, which has driven enterprise adoption but also drawn criticism over energy consumption and ethical concerns.

The postponement also impacts SoftBank, which has been a major investor and had counted on a 2026 public listing as part of its exit strategy. Other venture backers, including Thrive Capital and Sequoia, may need to adjust their portfolio timelines.

Looking ahead, OpenAI will need to resolve its $5 billion annual loss from computing costs and expand its business beyond subscriptions to consumers. Altman is expected to brief the board on a revised IPO timeline within the next quarter.