On June 9, 2026, OpenAI confidentially filed an S-1 registration statement with the US Securities and Exchange Commission (source: Yahoo Finance), just days after Anthropic filed theirs, officially turning what could have been a single landmark IPO into a two-horse race for the largest AI listing in history. The company was last valued at approximately $852 billion following its $122 billion funding round in March 2026 (source: OpenAI), and it targets a valuation above $1 trillion (source: Reuters).
ChatGPT needs no introduction. With a billion weekly active users (source: CNBC) and 50 million paid subscribers (source: TechCrunch), it is undeniably the most recognized AI product in the world. However, behind the brand, the company is much more complicated than what it lets on. Before you put your money in, it’s worth taking a closer look at what you’re actually getting.
In this article, we will break down what OpenAI is, how it makes money, and the key complications every investor should understand before the IPO goes live.
What is OpenAI?
OpenAI is an American AI research and deployment company founded in 2015 and headquartered in San Francisco, California. Its flagship product, ChatGPT, the consumer AI application that became the fastest-growing software product in history after its launch in November 2022. OpenAI also operates an API platform that allows businesses and developers to build on its models directly, along with enterprise products targeting Fortune 500 companies.
In April 2026, it was reported that OpenAI generated approximately $25 billion in annualized revenue, an increase from $20 billion at the end of 2025, with enterprise now accounting for more than 40% of that figure and growing (source: Yahoo Finance).
Despite this, the company projects a loss of $14 billion in 2026 and does not expect to reach profitability until approximately 2029 (source: Yahoo Finance). For every dollar it earns, it currently spends about $2.20. That gap is primarily driven by the cost of serving billions of ChatGPT and API requests every day (source: Yahoo Finance).
The founding story: From nonprofit to nearly $1 trillion
OpenAi was founded in 2015 as a nonprofit with backing from Elon Musk, Sam Altman, and others, with the explicit goal of ensuring that artificial general intelligence benefits all of humanity (source: OpenAI). The original structure was unusual by design with no shareholders and no profit motive, governed by a board accountable to the mission rather than to investors.
The structure quickly became a practical problem though. Building frontier AI requires enormous amounts of capital, and a nonprofit cannot raise it at scale. In 2019, OpenAI created a for-profit subsidiary to scale research and deployment efforts. Microsoft invested $1 billion that year (source: OpenAI), beginning a relationship that would define the company.
The governance tension came to a head on November 17, 2023, when OpenAI’s nonprofit board abruptly fired Sam Altman as CEO, citing concerns about his ability to lead OpenAI (source: Wikipedia). Within days, nearly all of OpenAI’s employees signed a letter threatening to quit unless Altman was reinstated. He was rehired on November 22, 2023, with the board that fired him almost entirely replaced (source: TechCrunch). The incident exposed the fragility of the nonprofit structure and set in motion the restructuring that followed.
In October 2025, OpenAI completed its conversion into a Public Benefit Corporation, the same structure that Anthropic uses. The original nonprofit, now called the OpenAI Foundation, retains a stake in the for-profit entity valued at approximately $130 billion, making it one of the best-resourced philanthropic organizations in the world (source: eWeek). The Foundation’s mission and its governance relationship to the for-profit are questions that the S-1, when published, will need to answer clearly.
How OpenAI makes money
OpenAI’s revenue comes from three main sources.
ChatGPT subscriptions are the most visible. The free tier drives awareness and user growth, while paid tiers (Plus at $20 a month, Pro at $200 a month, and Team and Enterprise plans for businesses) generate recurring revenue. With 50 million paying subscribers, consumer subscriptions are substantial, though enterprise is now the faster-growing segment.
The API platform allows developers and businesses to build products on OpenAI’s models directly. This is where the majority of enterprise revenue comes from, with usage billed on a per-token basis. OpenAI crossed one million business customers in November 2025, and enterprise is on track to reach revenue parity with consumer by the end of 2026 (source: OpenAI).
OpenAI’s latest and most capable model family is GPT-5.5, which powers both ChatGPT and the API. The company also operates Codex, its agentic coding tool competing directly with Anthropic’s Claude Code.
What you’re actually buying: The complications
OpenAI has a compelling product and extraordinary brand recognition, but the ownership and governance structure is more complicated than it appears at first glance.
Partnership with Microsoft
Microsoft has invested a total of $13 billion into OpenAI across multiple rounds and holds approximately 27% of the company, a stake worth around $135 billion (source: BusinessChief). More importantly, OpenAI pays Microsoft a revenue share on everything it earns. Under an amended agreement announced in April 2026, that revenue share continues through 2030 at the same percentage as before (source: OpenAI), but is now subject to a hard cap of $38 billion (source: Yahoo Finance). The cap was a significant improvement for OpenAI, with the uncapped terms estimated to have cost an additional $97 billion by 2030, but it still means a meaningful cut of revenue flows to Microsoft for the next four years (source: BusinessChief).
Microsoft also retains a non-exclusive license to OpenAI’s intellectual property on models and products through 2032 (source: BusinessChief). OpenAI can now work with any cloud provider, though Azure maintains a priority relationship. In simple terms, Microsoft is simultaneously OpenAI’s largest shareholder, its primary revenue-share recipient, and its preferred cloud provider.
Sam Altman has no equity
The CEO of the company that just filed for a potential $1 trillion IPO reportedly holds no direct equity stake in OpenAI (source: Business Insider). At most founder-led technology companies, the CEO’s equity stake is both a financial incentive and a signal of alignment with shareholders. The terms under which Altman might receive equity tied to the IPO, if any, have not been disclosed. This is a governance question that the public S-1 will need to address.
The nonprofit concern
The OpenAI Foundation retains a significant equity stake in the for-profit entity. Unlike a standard institutional investor, the Foundation's mandate is the responsible development of AI for the benefit of humanity, not shareholder returns. The exact governance relationship between the Foundation and the for-profit PBC in a post-IPO world is not clear yet. Investors buying into OpenAI as a public company will want to understand what influence, if any, the Foundation retains over major strategic decisions.
Losses until at least 2029
OpenAI’s own internal projections forecast a $14 billion loss in 2026, with cumulative losses before profitability projected at $44 billion (source: Yahoo Finance). The company is deliberately pricing its models below the true cost of serving them in order to capture market share. This is a coherent strategy, but it means public investors are being asked to fund years of losses at a valuation above $1 trillion. The path to profitability depends on compute costs falling fast enough and revenue growing consistently enough that the two lines cross by 2029, which is not a guaranteed outcome.
Why is everyone watching the OpenAI IPO?
It is the most recognized brand in AI
ChatGPT is the product that introduced most of the world to large language models. The brand awareness that comes from this has become a genuine advantage, as enterprise sales teams find it a lot easier to sell AI tools when buyers already trust the underlying product from personal use. No other AI company has a comparable consumer-to-enterprise pipeline.
The revenue trajectory is impressive
Going from near zero to $25 billion in annualized revenue in approximately three years is an extraordinary commercial achievement, even if you factor in the losses. Enterprise adoption is accelerating, with 40% of revenue now coming from business customers and the pipeline growing (source: Yahoo Finance).
The AI IPO wave is historic
OpenAI is filing alongside Anthropic and following SpaceX's listing, making 2026 the most significant year for technology public offerings in a generation. The attention this IPO class commands is drawing capital from a far broader investor base than any single company could attract alone.
What the bears are saying
With OpenAI moving closer to an IPO, the company has found itself under an even brighter spotlight. Alongside the excitement around its growth and innovation, questions about governance, safety, and competition have also come into sharper focus.
At a $1 trillion valuation on $25 billion in revenue, OpenAI would be trading at 40 times sales, before accounting for the Microsoft revenue share that reduces what actually flows through to the company. If you include the $14 billion in projected 2026 losses, the picture becomes more complex.
The competitive landscape is also shifting. Anthropic surpassed OpenAI in enterprise adoption in early 2026, with 34.4% of businesses using Claude compared to 32.3% using ChatGPT (source: MindStudio), and Anthropic winning approximately 70% of new enterprise deals (source: VentureBeat). ChatGPT's consumer dominance does not automatically translate into enterprise contracts, and the two markets are increasingly diverging.
Another challenge is the risk of AI models becoming a commodity. The cost of running advanced models keeps falling, thanks to open-source competition, new model releases, and better efficiency. If that trend continues, OpenAI could find it harder to charge a premium for its API. Its biggest strengths may ultimately be its brand and massive user base rather than a technical edge that competitors can’t replicate.
Are there any alternatives to the OpenAI IPO?
Microsoft (MSFT)
For now, Microsoft remains the most practical way to invest in the OpenAI story. Beyond its estimated 27% stake, Microsoft has already built a thriving AI business of its own and integrated AI features across its product ecosystem. A successful OpenAI IPO would likely boost the value of Microsoft’s investment, but even without that upside, the company is already benefiting from the AI boom through its own products, cloud platform, and enterprise offerings.
Anthropic IPO
If you have an interest specifically in the frontier AI lab category, Anthropic is the more direct comparison. It is already the enterprise leader, is approaching profitability faster than OpenAI, and is also targeting an IPO in October 2026. The two companies represent different bets: OpenAI on consumer brand and scale, Anthropic on enterprise depth and safety positioning.
Nvidia (NVDA)
If you believe AI infrastructure spending will keep growing regardless of which lab wins, Nvidia is worth considering as an investment alternative. OpenAI, like every major AI lab, runs on Nvidia GPUs. Nvidia commands over 90% of the AI accelerator market (source: Introl), and its data centre revenue reached a record $75.2 billion in Q1 fiscal 2027 (source: Nvidia). It does not need to pick a winner to benefit.
What should you actually do?
If you are a trader
For traders looking to take advantage of the IPO, timing will matter. OpenAI’s brand is one of the strongest in tech today, which could fuel significant retail excitement when shares first hit the market. But that enthusiasm can swing both ways, creating sharp movements in the early days of trading. It’s also worth watching how the Anthropic IPO performs beforehand. If the IPO does well, OpenAI's opening will benefit from that momentum as well. If the sentiment has cooled, you can expect more volatility. But regardless of the sentiment, you should have a clear exit in mind before you enter.
If you are a long-term investor
When OpenAI eventually publishes its S-1, that’s the document investors should pay most attention to. In the S-1, you should look at two things:
how the Microsoft revenue-share cap affects OpenAI's effective margin over the next four years
what the governance relationship between the OpenAI Foundation and the public company actually looks like
Everything else such as the growth rate, the brand, and the product, is already priced in. The structural questions are what the market has not priced in.
OpenAI could be a generational investment, but it could also be an extraordinary brand sitting on top of a structurally complicated business that does not become profitable until 2029 at the earliest. The filing will tell you which one it is more likely to be.
Closing thoughts
ChatGPT is one of the most important products of the modern internet era. But it is important to note that great products do not automatically make great investments. As OpenAI moves toward a public listing, the real question is not whether people love the product, it's whether the underlying business can justify the valuation. The S-1 will be the first document that separates fact from hype. Until then, investors are largely just trading on a narrative.
Frequently asked questions
When is the OpenAI IPO date?
OpenAI filed a confidential S-1 with the SEC on June 9, 2026. A September 2026 listing has been reported as possible, though the company has said no decision to go public has been made and that market conditions will be a key factor. A late 2026 window is considered more likely.
What is OpenAI's IPO valuation?
OpenAI was most recently valued at approximately $852 billion following its $122 billion funding round in March 2026. The company is targeting a public debut valuation above $1 trillion.
Is OpenAI profitable?
No. OpenAI projects a $14 billion loss in 2026 and does not expect to reach profitability until approximately 2029. For every dollar it earns, it currently spends around $2.20, primarily driven by the cost of running ChatGPT and its API at scale.
What is the deal with Microsoft?
Microsoft holds approximately 27% of OpenAI and receives a revenue share from OpenAI through 2030, capped at $38 billion in total. It also holds a non-exclusive licence to OpenAI's intellectual property through 2032, and Azure remains OpenAI's preferred cloud provider. Microsoft is simultaneously OpenAI's largest shareholder, its revenue-share recipient, and its primary infrastructure partner.
Does Sam Altman own equity in OpenAI?
As of the most recent information available, Sam Altman holds no direct equity stake in OpenAI. What he might receive in connection with the IPO has not been disclosed, and is a governance question the S-1 should address.
What is the OpenAI Foundation and does it matter for investors?
The OpenAI Foundation is the original nonprofit that founded OpenAI. After the October 2025 restructuring, it retains a stake in the for-profit entity worth approximately $130 billion. Its governance relationship to the public company is not yet defined, and investors should watch closely for how this is disclosed in the S-1.
How does OpenAI compare to Anthropic?
As of early 2026, Anthropic has surpassed OpenAI in enterprise adoption, winning approximately 70% of new enterprise deals. OpenAI retains a large lead in consumer users, with a billion weekly active users. Anthropic is also closer to profitability, with its first profitable quarter expected in Q2 2026 versus OpenAI's 2029 target.
What are the alternatives to buying OpenAI at IPO?
Microsoft holds 27% of OpenAI and already generates $37 billion annually in AI revenue, making it the most direct public-market proxy. Anthropic, targeting an October 2026 IPO, is the closest direct competitor. Nvidia, which supplies the GPU infrastructure that every major AI lab depends on, offers exposure to AI growth without needing to pick a winner.
Researched and written by the BloFin Academy editorial team. Primary sources include Yahoo Finance, CNBC, TechCrunch, Washington Post, OpenAI's own published communications, Microsoft investor announcements, VentureBeat, eWeek, Time, and Nvidia investor relations. All facts independently verified against cited documentation current as of June 2026.
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency trading involves substantial risk of loss. Past performance does not guarantee future results. Always conduct your own research and consider your financial situation before trading. BloFin does not guarantee the accuracy of third-party data referenced herein.