OpenAI is leaning toward holding off on its initial public offering until 2027, according to a New York Times report that has rippled across financial markets.
The Times, cited by Reuters and Bloomberg, reported on Thursday that three people involved in the company's deliberations described advisers pushing chief executive Sam Altman to move slowly. According to the New York Times, those advisers warned that Altman's desired $1 trillion valuation may not be achievable in current market conditions.
A key trigger, according to the reporting, was the recent volatility in SpaceX's stock. Yahoo Finance described a "dramatic post-listing plunge" for SpaceX after it went public, a cautionary example for another marquee tech listing. The Times also pointed to broader financial challenges at the start-up, while Crypto Briefing framed the hesitation around market uncertainties and unmet revenue targets. According to Seeking Alpha, concerns over investor sentiment are part of the calculus, and Startup Fortune reported that OpenAI's CFO has warned the company isn't ready for public markets.
The report moved more than OpenAI's own plans. Seeking Alpha reported that shares of Morgan Stanley and Goldman Sachs — banks that would stand to earn fees underwriting a blockbuster listing — dropped on the news. Yahoo Finance reported that the Dow, S&P 500 and Nasdaq wavered as the report rattled chip stocks, and several outlets, including The Motley Fool and Yahoo Finance, openly questioned whether a delay signals the AI bubble may be deflating.
It's worth noting these are reports of internal deliberations, not a formal company announcement, and plans described as "leaning toward" can change.
Why it matters: OpenAI is the most prominent name in artificial intelligence, and the timing and valuation of its eventual public debut have become a barometer for the entire AI investment boom — so even a rumored delay can shake the chipmakers, banks and indexes riding on it.