OpenAI Just Delayed Its IPO to 2027 — And Now It Wants to Give the U.S. Government an Equity Stake

[TL;DR] - OpenAI is leaning toward delaying its IPO to 2027 rather than list in late 2026 at a valuation below $1 trillion, according to the New York Times — CEO Sam Altman reportedly called any cut to that trillion-dollar target a "non-starter." - The technical/financial catalyst is a confidential S-1 filed with the SEC on May 22, 2026, alongside a separate proposal to offer the U.S. government a roughly 5% equity stake (valued near $43 billion) as part of a "Public Wealth Fund" concept — though no final agreement has been reached. - Business implication: the delay hands rival Anthropic a chance to define the AI-IPO playing field first, while OpenAI's own CFO has pointed to $600 billion in future infrastructure commitments and mounting losses as reasons to wait for calmer market conditions. --- [Body] ### The Core Decision: Wait for $1 Trillion, or List Sooner at a Discount According to the New York Times, OpenAI's advisers presented Sam Altman with a binary choice: accept a lower valuation and list in late 2026, or hold out for a $1 trillion valuation and wait until 2027. Altman reportedly rejected any valuation cut as a "non-starter." That leaves OpenAI anchored to a target roughly 17% above its most recent private valuation of $852 billion, set in March 2026 after a $122 billion funding round backed by SoftBank, Amazon, and Nvidia. ### The Government Equity Proposal Separately, OpenAI has floated offering the U.S. government a 5% equity stake — valued at roughly $43 billion — as part of a proposed "Public Wealth Fund" structure. This is a proposal under discussion, not a finalized deal; no agreement has been confirmed by either side. ### Why the Delay Makes Financial Sense — and Why It's Risky OpenAI CFO Sarah Friar has reportedly pushed for the 2027 timeline, citing $600 billion in future infrastructure spending commitments and the difficulty of meeting public-company reporting standards on a compressed schedule. The numbers underneath explain the urgency for eventual capital: audited documents reviewed by the Financial Times show OpenAI generated $13.07 billion in revenue in 2025, more than tripling from $3.7 billion the year before — strong growth, but the company is still not profitable, and it's spending far more than it takes in. PitchBook analyst Harrison Rolfes framed the risk bluntly: "If OpenAI delays its IPO to 2027, it will cost them the most because they have the most to lose. They are under capital pressure today, and they need public markets to give them the capital to support their burn." ### The Anthropic Angle A delay would hand rival Anthropic the option to go public first, which matters more than sequencing alone — the company that lists first effectively sets the comparables, valuation benchmarks, and success metrics that the follower then has to argue against or match. Anthropic closed a $65 billion funding round in late May at a $965 billion valuation, surpassing OpenAI's last private mark by $113 billion, though Anthropic has given no public indication of its own IPO timeline. ### Market Odds Have Already Shifted Prediction market Kalshi reportedly now assigns a 59% probability that OpenAI formally announces an IPO by March 1, 2027, rising to 73% by June 2027 — up sharply from earlier odds of just 30–40% for a 2026 listing before this reporting emerged. ### The Bottom Line Nothing here is finalized: not the IPO timing, not the government equity stake, not even whether OpenAI ultimately holds to its $1 trillion target. But the direction of travel is now fairly clear — OpenAI is prioritizing valuation over speed, betting that 2027 market conditions and its own revenue growth will justify the wait, even as it burns cash today and cedes first-mover advantage in the AI IPO market to Anthropic. --- [Sources] - The New York Times (via Yahoo Finance/PitchBook coverage) — "AI trade hits a wall amid report that OpenAI will delay IPO until 2027" - PitchBook — "What happens if OpenAI delays its IPO to 2027?" - TheStreet — "OpenAI's $1 trillion ambition could delay its IPO" - SmartAsset — "OpenAI Stock IPO: Valuation, Timeline and Investment Options" --- Tags #OpenAI, #IPO, #SamAltman, #Anthropic, #AIIndustry, #TechFinance