"OpenAI needs a steady way to get fresh capital onto its balance sheet - and just going public likely won't meet needs that are on a different plane than anything seen in tech before. The company has already committed $1.4 trillion in infrastructure through deals with partners including Oracle, Nvidia, SoftBank and AMD. Altman says he'd like to crank that up to $20 billion per week (more than $1 trillion a year) if he can figure out the technical and financial means to do so."
"The big picture: The world's most important AI company going public would signal a new phase of maturity for an industry that didn't exist all that long ago. Just as the blockbuster IPOs of Facebook and Twitter in the 2010s marked a new era for social media, OpenAI going public would further cement AI's position in the economy. Driving the news: CEO Sam Altman said Monday that an IPO is the " most likely" option for the company."
OpenAI is considering an IPO as the most likely option. A filing could value the company at $1 trillion, twice current valuation, with a debut possibly in 2027. The company must raise hundreds of billions, much through debt, while also raising equity. Recent investors include SoftBank, Nvidia and Microsoft, but more capital is still needed. Infrastructure commitments total $1.4 trillion, with ambitions to scale to $20 billion per week if technical and financial means are found. OpenAI is currently generating large losses and expects negative cash flow around $8 billion this year.
Read at Axios
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