The AI firm targets a $1 trillion valuation before going public, citing investor sentiment and market volatility risks.
OpenAI is reportedly postponing its initial public offering until 2027, as it seeks to avoid unfavorable market conditions. The decision follows concerns over investor sentiment toward AI companies failing to meet high expectations, which has recently pressured valuations in the sector.
The company, backed by Microsoft, currently holds an $852 billion valuation but aims for at least $1 trillion before pursuing an IPO. OpenAI is expanding investments in data centers and talent while diversifying revenue streams, including advertising, with projections to reach $2.5 billion this year and $100 billion by 2030.
No immediate market reaction was disclosed, but the delay reflects broader caution in the AI sector amid valuation volatility.