OpenAI is preparing for a possible $1 trillion IPO, a listing that could turn Microsoft’s 27% stake into a $270 billion holding.
Key Points:
- OpenAI is reportedly leaning toward a 2027 IPO with a valuation of at least $1 trillion.
- Microsoft’s fully diluted stake could be worth about $270 billion at that level.
- The possible listing comes as Microsoft shares lag despite strong Azure growth.
OpenAI IPO
OpenAI has begun laying the groundwork for a public listing that could rank among the largest in U.S. corporate history, according to reports cited in the provided material.
The company has not confirmed a $1 trillion target, but Sam Altman is reportedly unwilling to accept a lower valuation and is leaning toward a 2027 debut rather than late 2026.
OpenAI said in June that it had submitted confidential documents to the U.S. Securities and Exchange Commission, a formal step toward an initial public offering. Microsoft owns about 27% of OpenAI on a fully diluted basis, a stake valued at roughly $135 billion when OpenAI completed its October 2025 restructuring into a public benefit corporation.
At a $1 trillion IPO valuation, that stake would be worth about $270 billion, equal to roughly 9% of Microsoft’s $2.9 trillion market capitalization.
The same restructuring extended Microsoft’s rights to OpenAI technology through 2032 and included OpenAI’s commitment to buy another $250 billion in Azure cloud services.
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Microsoft Stake
The possible IPO matters because Microsoft shares have fallen about 19% in 2026 and sit nearly 30% below their 52-week high, even as the company’s core business continues to grow.
For the fiscal third quarter ended Mar. 31, 2026, Microsoft reported revenue of $82.9 billion, up 18% from a year earlier, while earnings per share rose 23% to $4.27.
Azure and other cloud services revenue grew 40%, but investors have focused on Microsoft’s expected $190 billion in fiscal 2026 capital expenditures.
OpenAI is also discussing a proposal to give the U.S. government a 5% equity stake, according to the Financial Times, though the talks remain early and could face political barriers. Supporters compare the idea with the government’s 9.9% stake in Intel under the CHIPS Act, while critics argue it may be aimed more at political goodwill than public wealth creation.
The IPO would not give Microsoft immediate cash, but it would attach a public market value to an asset that remains difficult for investors to price.
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