Startups
OpenAI May Push IPO to 2027 as Chip Stocks Retreat
The AI leader weighs delaying its public debut to reach a $1 trillion valuation, dampening a brief rally in semiconductor stocks.
Key takeaways
- OpenAI is weighing postponing its IPO until 2027 to improve chances of achieving a $1 trillion valuation versus going public in 2026 below that mark.
- The company filed confidential S-1 paperwork in June but reserved the right to adjust timing based on strategic considerations.
- SpaceX's volatile post-IPO performance—initially surging then falling back to opening levels—is influencing OpenAI's decision calculus.
- The potential delay interrupted a brief rally in chip stocks that followed strong earnings from Micron and optimistic guidance from Qualcomm.
- OpenAI's March valuation stood at $852 billion while rival Anthropic was last valued at $965 billion.
OpenAI is considering delaying its initial public offering until 2027, according to a report that sent semiconductor stocks lower on Friday and interrupted a brief rally in AI-related equities.
The AI company is weighing whether to proceed with a 2026 IPO at a valuation below $1 trillion or wait another year for a better chance at crossing that threshold, the New York Times reported. OpenAI filed confidential S-1 paperwork with the Securities and Exchange Commission on June 8 but indicated at the time that it hadn't settled on timing, noting certain strategic moves would be "easier as a private company."
OpenAI's most recent valuation stood at $852 billion post-money as of March. Its primary competitor Anthropic, which filed confidential IPO paperwork on June 1, was last valued at $965 billion.
Why it matters
The potential delay signals caution among even the most prominent AI companies about public market conditions. OpenAI's hesitation reflects broader uncertainty about whether current AI valuations can hold—a question that has repeatedly rattled chip stocks and AI equities in recent months. For enterprise technology buyers and investors, the decision underscores that even category leaders are carefully timing their exposure to public market scrutiny.
SpaceX performance influences timing
Part of OpenAI's calculus stems from observing SpaceX's recent public market performance. The space company's stock initially surged from its $150 opening price to more than $225 but retreated to $151 by early Friday. Since its debut, SpaceX announced plans to acquire AI coding tool Cursor and raised $25 billion through a bond sale.
Brief chip rally interrupted
The OpenAI news halted a rally in memory stocks that began Thursday following Micron's strong earnings report on Wednesday. Micron exceeded analyst expectations on both revenue and profit while providing optimistic forward guidance. Separately, Qualcomm announced new data center products Wednesday and projected $15 billion in data center revenue for fiscal 2029.
Those announcements had temporarily eased investor concerns about an AI bubble, but Friday's report reignited questions about the sustainability of elevated valuations across chip stocks and AI companies.
The details were first reported by the New York Times.
