ChatGPT maker reportedly eyes $1 trillion IPO despite major quarterly losses

OpenAI, the creator of the popular chatbot ChatGPT, is reportedly gearing up for an initial public offering (IPO) that could value the company at a staggering $1 trillion. The IPO preparations come as the company grapples with significant quarterly losses of potentially as much as $11.5 billion.

According to sources familiar with the matter, OpenAI has discussed raising around $60 billion in preliminary talks, which would translate to a valuation of over $1 trillion if most shares remain private. The final figures and timing will likely be influenced by business growth and market conditions.

Despite the uncertainty surrounding the IPO, CEO Sam Altman has stated that going public is "the most likely path for us" given the capital needs that the company will require in the future. This move could provide OpenAI with more efficient access to capital and enable larger acquisitions using public stock, helping to finance Altman's ambitious plans to spend trillions of dollars on AI infrastructure.

However, OpenAI faces an uphill financial battle ahead. The company expects to reach $20 billion in revenue by year-end, but its quarterly losses are substantial. Microsoft, which owns 27% of OpenAI under a new restructuring deal, reported that the company's share of OpenAI losses reduced its net income by $3.1 billion in the quarter that ended September 30.

A successful IPO could represent a significant gain for investors, including Microsoft, SoftBank, Thrive Capital, and Abu Dhabi's MGX. Nevertheless, OpenAI must navigate the challenges ahead and demonstrate its ability to generate consistent revenue and profitability if it hopes to achieve its ambitious goals.

OMG, can you believe OpenAI is gonna be worth $1 trillion?! That's insane! I'm low-key excited for Sam Altman, but also kinda worried about the company's financials . Quarterly losses of $11.5 billion? That's crazy! They need to get their act together ASAP or risk burning through all that capital .

I think this IPO is a great move for them though, it'll definitely give them access to more cash and help them acquire the infrastructure they need to take AI to the next level . But, fingers crossed they can pull off the growth and make those billions in revenue ! Can't wait to see how this plays out .

omg can you believe this $1 trillion valuation is crazy talk but i gotta give credit to openai they're like the pioneers of ai tech and chatbots their impact will be huge on our daily lives i'm excited to see how they'll use that cash to further develop their models and make them more accessible to everyone altman's vision is ambitious for sure but it's also scary thinking about the risks involved if they can pull it off though that would be a major milestone for the tech industry

man... think about this... $1 trillion valuation is crazy... what's the logic behind that? do they really think AI is gonna save the world or something? and these losses, whoa... 11.5 billion quarterly loss... how do you even make numbers like that up? and then there's this talk of trillions on AI infrastructure... does anyone know what's actually happening behind the scenes? are they just throwing money at it?

I'm thinking, if they do manage to hit that $1 trillion valuation, I wonder what kind of pressure that will put on them to deliver... I mean, a billion bucks is a lot of money, but like, can they really make good on the promises made by Sam Altman?

The hype around ChatGPT and OpenAI's potential IPO is crazy ! I mean, $1 trillion valuation? That's wild . But let's put things into perspective - those quarterly losses are massive . If the company can't get its finances in check, an IPO won't magically fix everything .

I'm also wondering what Altman means by "ambitious plans" . Trillions of dollars on AI infrastructure? That sounds like a lot of risk to me . OpenAI needs to show that they can execute on their strategy and turn a profit before they start playing with fire .

It's interesting to see how Microsoft is trying to recoup some losses . Maybe the IPO will give them a chance to get out from under some of those financial burdens . But for OpenAI, it's about more than just raising capital - it's about proving that they can make it in the long run

I don't think $1 trillion valuation is that far-fetched lol . I mean, ChatGPT has been a game-changer in the AI space and OpenAI's innovative approach is definitely worth investing in. But, let's be real, they still have to figure out how to make money from all this AI magic . Quarterly losses are pretty steep, like $11.5 billion? That's a lot of cash burn . I'm curious to see how Microsoft's 27% stake will play out, too. Will it help or hinder OpenAI's growth? Only time will tell .

I'm surprised that OpenAI is going for an IPO given their huge quarterly losses $11.5 billion? That's like, a lot of money! But at the same time, they need that capital to grow and expand their AI infrastructure plans . It's a bit worrying that they're valuing themselves at $1 trillion though I mean, have they even broken even yet? Still, if they can pull it off, it could be a big win for investors like Microsoft and SoftBank

I don't know about this $1 trillion valuation tho Like, what even is AI worth that much ? OpenAI needs to show us they can make some real cash before we get all hype about their IPO . And what's up with the quarterly losses of $11.5 billion ? That's just crazy talk ! I'm not saying it won't happen, but I need to see more proof that they can turn a profit .

OMG, $1 trillion valuation is wild ! Like, I know OpenAI's got some serious AI game going on, but that's a LOT of money . I'm curious to see how they plan to spend all that cash on AI infrastructure . It feels like Sam Altman's gotta have a solid plan in place to make it all work . The quarterly losses are pretty scary too... $11.5 billion is huge . Fingers crossed they can get their finances sorted out and pull off this IPO without any major hiccups .

$1 trillion valuation? That's a bit too much for me, you know? I mean, they're burning through cash at a rate of $11.5 billion quarterly losses... how's that gonna end well? And what's with the "ambitious plans" to spend trillions on AI infrastructure? Sounds like just a fancy way of saying "we have no idea how we're gonna make this work". I need some more concrete details on their business model before I start cheering them on. Where's the proof that they can actually turn a profit?

I'm thinking, $1 trillion valuation is wild but like, how are they gonna make that happen? They're already burning through cash left and right . I mean, $11.5 billion quarterly losses is crazy even for a company as hyped as OpenAI . And what's up with Microsoft owning 27% of them? Is that just to get more control over the AI game?

I'm low-key hyped about ChatGPT but also kinda worried about the whole IPO thing... $1 trillion valuation? That's wild . As a casual user, I just hope they don't raise prices too high and that they invest some of that cash into making AI more accessible for regular folks . And what about all those AI projects Sam Altman is talking about? Will it just be more money down the drain ? Time will tell, I guess...

I'm like "Yaaas, $1 trillion is totally achievable!" But then I think... wait a minute, how can they afford that? They're already losing $11.5 billion quarterly lol what's going on there . And don't even get me started on the Microsoft involvement, are they really backing them up or just trying to make some cash off this IPO? I mean, Sam Altman wants it "the most likely path" but is he sure that's a good idea considering all these losses . Maybe they should just slow down and figure out their business model first?

I'm thinking, like, what's going on with these big tech companies? They're making billions of dollars in losses and still trying to get their IPOs done . I mean, I got my old Nintendo Switch from 2017 for like, $300, and it was a great console. Now, this OpenAI thing is gonna be worth over a trillion bucks?! That's just crazy talk .

And Microsoft, who owns like, 27% of them, is already seeing a hit on their profits because of these huge losses. I feel bad for the people invested in SoftBank and Abu Dhabi's MGX, they must be sweating . But at the same time, if OpenAI can pull off this IPO and actually make some money, it'll be lit .

OMG u guys!! Like, $1 trillion valuation?? That's insane!!! I'm literally shaking with excitement thinking about what this means for AI in general. OpenAI is already killing the game with ChatGPT and now they're about to take it to a whole new level... I mean, can you imagine all the possibilities? Sam Altman is a genius, I swear! He's like a visionary or something. And Microsoft owning 27% of OpenAI just means more power and resources for them to make it even bigger and better. Thrill ride, anyone?!