OpenAI may push IPO to next year: What's behind the delay?
OpenAI is leaning toward postponing its initial public offering (IPO) until next year, rather than getting listed later this year, The New York Times reported
OpenAI is leaning toward postponing its initial public offering (IPO) until next year, rather than getting listed later this year, The New York Times reported, citing people aware of the matter. This move comes amid SpaceX’s rocky debut and a broader slump in technology stocks. According to the report, the ChatGPT maker had hired bankers and lawyers to prepare for a public offering as early as the third or fourth quarter of this year. The sources also told the news publication that chief executive officer Sam Altman had also asked advisors to explore ways to secure a $1 trillion valuation for OpenAI, significantly higher than its last private valuation of $730 billion. What spooked OpenAI into delaying its IPO? A series of recent developments has prompted OpenAI to reconsider its public offering timeline. Among the key factors is the weak post-liating performance of SpaceX, whose shares have fallen sharply since its record-breaking IPO. Quick answers to key questions • 5 QUESTIONS 1 Why is OpenAI considering delaying its IPO to next year?
⌵ OpenAI is considering postponing its IPO due to recent volatility in technology stocks, particularly influenced by SpaceX's poor share performance since its IPO. 2 What factors are influencing OpenAI's decision to postpone its IPO? ⌵ Key factors include the weak post-listing performance of SpaceX, broader market volatility affecting technology stocks, and concerns regarding retail investor enthusiasm. 3 How does OpenAI plan to achieve a $1 trillion valuation for its IPO? ⌵ OpenAI's CEO Sam Altman has directed his advisors to explore strategies to secure a $1 trillion valuation, emphasizing that this figure is significantly higher than its last private valuation of $730 billion. 4 Should investors be concerned about OpenAI's IPO delay? ⌵ Yes, the delay might lead to disappointment among investors and analysts who anticipate one of the most significant public listings in recent history, especially amid a challenging market environment. 5 What does the future hold for OpenAI's IPO plans amid current market conditions? ⌵ OpenAI has filed confidentially for an IPO but has not committed to a specific timeline, suggesting that market conditions will significantly influence their final decision on when to go public.
Elon Musk's AI-to-rockets company raised more than $85 billion and reached a valuation of $1.77 trillion on its debut. But since then, SpaceX’s shares have slumped to $153 at the end of the trading day on Thursday after reaching a high of $202 last week. Also Read | US judge dismisses Musks xAI trade secret lawsuit against OpenAI Global markets have also been volatile in recent weeks, with technology stocks dragging down indexes as investors question whether artificial intelligence companies will live up to their promises and justify their lofty valuations. This factor has also weighed on OpenAI's plan for a public listing this year. That has caused the company's advisers, in conversations with the company over the past week, to caution that it may not find much enthusiasm from retail investors for its own shares, two of the people involved told the publication. IPO delay could disappoint Wall Street OpenAI’s reported decision to slow its IPO plans could disappoint Wall Street and Silicon Valley who are hoping for one of the biggest public listings in recent years.
The BriefWire