Among the highly anticipated IPOs of 2025, OpenAI’s debut could be one of the most significant in history. Here’s everything we know about its potential listing on Wall Street.
OpenAI IPO: Is ChatGPT Going Public in 2025?
Two years after the launch of the AI-powered chatbot, OpenAI has yet to formalize its plans to become a public company. A potential initial public offering (IPO)] would give OpenAI access to significant liquidity, enabling the company to fund ambitious growth and development projects in the rapidly expanding artificial intelligence sector. According to estimates, AI is projected to grow at a compound annual growth rate (CAGR) of 37.4% through 2032.
While OpenAI explores its IPO options, other tech unicorns, including SpaceX—Elon Musk’s aerospace company—are also expected to debut on the Nasdaq in 2025.
However, OpenAI faces several challenges that could complicate its path to going public. These include balancing the need for transparency and control to satisfy investors with the freedom to innovate without constraints. Additionally, transitioning from a non-profit to a for-profit structure could take longer than anticipated. The broader market environment also poses challenges, as tech IPOs have struggled in recent years, with valuations often dropping sharply after launch.
Compounding these difficulties are ethical and regulatory concerns surrounding AI, such as its impact on employment and the environment, as well as fierce competition from companies like Google DeepMind, Anthropic, and xAI. Despite these hurdles, an OpenAI IPO represents a rare opportunity for investors eager to ride the artificial intelligence trend.
When Will ChatGPT Go Public?
The IPO of ChatGPT—or, more accurately, its parent company OpenAI—remains uncertain. While no official date has been announced, there are indications that the listing could happen within the next two years.
Before going public, OpenAI must complete its transition from a non-profit to a for-profit structure, which involves amending its bylaws. This step is critical for allowing investors to share in profits and meet the regulatory requirements of an IPO. However, this process takes time and may not be completed before 2026.
Given OpenAI’s ambitions and strong market interest, analysts believe the company could accelerate this transition, potentially debuting on the stock market by 2025.
How Much Is OpenAI Worth, and What Will Its Shares Cost?
OpenAI was recently valued at 157 billion dollars following its latest funding round, which included significant investments from Nvidia and Microsoft. At this valuation, OpenAI could be one of the largest tech companies to go public, second only to SpaceX.
Industry experts estimate that OpenAI shares could debut at a price of at least $100 per share. However, this figure could rise depending on market conditions and the company’s performance. OpenAI is projected to generate $11.6 billion in revenue by 2025, further fueling its attractiveness to investors.
Is OpenAI Worth Buying?
Investing in OpenAI offers exciting potential but is not without risks. On the positive side, the company is a leader in the AI space, with transformative products like ChatGPT that have driven massive growth. With strong demand for AI solutions, OpenAI is well-positioned to dominate the sector, making it an appealing option for investors seeking exposure to a booming industry.
However, there are risks. The volatile market environment, combined with costs that currently exceed revenues, and uncertainties surrounding the transition to a for-profit model, should temper expectations. OpenAI anticipates reaching annual revenues of $3.7 billion in 2024 and $11.6 billion in 2025. Yet, 2024 costs alone are projected to reach $8.5 billion.
To achieve its ambitious revenue target of $100 billion by 2029, analysts suggest OpenAI would need to raise its subscription plan price to $44 per month and grow its paying user base to 189 million.
For long-term investors, OpenAI could prove to be a winning bet. However, in the short term, the risks associated with its IPO and market dynamics are considerable.
|DISCLAIMER
The information and considerations contained in this article should not be used as the sole or primary support for making investment decisions. The reader retains full freedom in his or her investment choices and full responsibility in making them, since he or she alone knows his or her risk appetite and time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public to save.|
Original article published on Money.it Italy 2024-12-12 17:21:00. Original title: IPO di OpenAI, ChatGPT si quoterà in borsa nel 2025?
