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Businesses The Almighty Buck

OpenAI Files For IPO (cnn.com) 58

Posted by BeauHD from the another-day-another-IPO dept.
OpenAI has confidentially filed for an IPO, "setting it up for what may be the most highly anticipated market debut in recent history and a massive payday for early investors," reports CNN. The decision follows recent IPO announcements from Anthropic and SpaceX. From the report: OpenAI said it has not decided on timing yet. And because the filing is confidential, it's not yet clear how many shares the company plans to sell or at what price. "It may be a while because there are things we want to do that are likely easier as a private company," it said in a post on its newsroom page. But the company said the filing "gives us the option to go public sooner if that ends up being best."

The transition to a public company will give Wall Street a window into OpenAI's finances as the company pours billions into AI infrastructure and computing resources. Investors dumped tech stocks last week as they questioned whether a recent run-up in those shares had gone too far. OpenAI was last valued at $852 billion after raising $122 billion in March, but it's faced pressure to demonstrate it can generate the cash to match that valuation.

OpenAI Files For IPO More | Reply

OpenAI Files For IPO

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  • If you missing Dotcom 1.0 (Score:1)

    by Anonymous Coward
    You're going to love this new iteration.

  • Buckle up! (Score:5, Insightful)

    by Sebby ( 238625 ) on Monday June 08, 2026 @07:35PM (#66181372) Journal

    and a massive payday for early investors

    Buckle up everyone - a bunch of new rich white assholes are about to join the fray...

    • Re: (Score:3)

      by znrt ( 2424692 )

      Buckle up everyone - a bunch of new rich white assholes are about to join the fray...

      and ordinary people's pension funds. this is a cricular money printing machine but it's all based on "valuation", someone has to provide actual liquidity for the cash-outs before it crashes.

    • Re: (Score:2, Insightful)

      by rsilvergun ( 571051 )
      It's the same Rich assholes as always, not all of them are white. I mean technically they are all white because white isn't a skin color it's a way that we have traditionally decided whether or not you are in the in-group or not here in America and other places but that's a whole nother can of worms...

      I think this is more about buying into who gets to be a member of the ruling elite in the coming automation apocalypse than anything else though.

      AI can't be profitable as a business or a service withou
      • AI can't take jobs because AI can't even code reliably after the training models are fed every coding shortcut in the book. I mean, look at the AI coded browser that couldn't open most webpages, or the fact Claude really couldn't even compile Doom without help. Rinse and repeat that multiple times then start adding nightmarishly bad security. Let's be real: There's a reason why they effectively rig the tests for these chatbots.

        Dario Amodei and Sam Altman desperately need people to be afraid. They need to

    • Re:Buckle up! (Score:4, Insightful)

      by jhoegl ( 638955 ) on Monday June 08, 2026 @09:15PM (#66181504)
      oh please, this is a pump and dump. They have been doing this in the tech industry since 1999.

    • Re: (Score:1, Insightful)

      by Iamthecheese ( 1264298 )
      Don't worry, there's redemption for every bigot. You could start by watching the speech about judging people by the content of their character.

  • IPO? (Score:5, Interesting)

    by sound+vision ( 884283 ) on Monday June 08, 2026 @07:37PM (#66181380) Journal

    IPO? I thought this was supposed to be non-profit...

  • Already spent my money on SpaceX (Score:4, Funny)

    by thesjaakspoiler ( 4782965 ) on Monday June 08, 2026 @07:49PM (#66181392)

    So no money for Sam.

  • All based on fake values (Score:3)

    by RealMelancon ( 4422677 ) on Monday June 08, 2026 @08:20PM (#66181436)
    Seriously ? How much profit have the made so far ? Just a Quick number ? Is their service so different and unique from the competition ? How can a company be valued at $852,000 million dollars when they havenâ(TM)t made a cent of profit is beyond me.

    • It's the tech way. When private capital runs out you have to raid the 401k and pension money.

    • How can a company be valued at $852,000 million dollars when they havenâ(TM)t made a cent of profit is beyond me.

      Whenever you ask yourself that, just repeat in your mind: company valuations are based on expected future earnings.

      • Re: (Score:2)

        by Tom ( 822 )

        But that's kinda the point. What future earnings, given that so far they have none? To make a profit, they would have to dramatically change their fees. As in: Quadruple at least. That's going to destroy the user base really quickly. And as Altavista found out: Once you are no longer synonymous with a service, you are easily replaced.

        • Expected future earnings. That first word often does a lot of heavy lifting in a nascent industry like AI. And yes, it probably does mean they'll need to raise their prices, but also that they'll be able to do just that and still stay in business.

          • Re: (Score:2)

            by Tom ( 822 )

            I can read. Of course expected, that's implicit in "future" unless someone discovered clairvoyance.

            So again, in other words: What do people base those expectations on when so far the company hasn't made any profit at all? In a profitable company, I can extrapolate. I can assume "with X additional cash raised, they can build Y more factories, selling Z more goods." - but for a company that is negative and is making a LOSS on every customer at the moment, growth does not equal profit, it equals more loss.

    • Profit means nothing. It's how quick you can get in and out of the market before the plebs lose their shirts.

  • Software playbook (Score:3, Informative)

    by RightwingNutjob ( 1302813 ) on Monday June 08, 2026 @08:29PM (#66181446)

    It costs next to nothing to bring on a new customer since there's no widget to make and ship.

    Growing marketshare is *the* priority. Give it away for free. Pay people to use it if you must.

    Then once they're hooked, start charging licensing fees. Just a little. More for bigger customers. Maybe keep a free tier for personal use. A little times a huge userbase is enormous cashflow for a little bit of nre.

    It's great cuz the customer supplies his own platform, pays for training his own people, and even pays for the electricity to run your product on premises.

    Now about this building full of expensive and power-hungry silicon needed to deliver the ai hotness...

  • Altman made himself the face of AI and the Elon Musk further put a target on his back with the litigation trial. Any and all bad outcomes of AI still be blamed on him correct or not.

    With how the AI datacenters are built in residencial areas, at some point a kid with a heart condition will die from the side effects of the noise. You already near stories of the screams of children at night where they have nightmares triggered by the constant vibration.

    I fully believe one of these parents will eventually get

    • Does the fact that he's gay make you want to kill him more or less? It seems suspicious that he's the only one on your hit list.
  • The enshittification amplifies! How they find private investment to be a noble thing is beyond me. Slouches is all I see.
  • Talk about a company that has nothing to show for itself except the promises of future performance... This should be illegal.

  • You all will own these stocks (Score:4, Interesting)

    by CommunityMember ( 6662188 ) on Monday June 08, 2026 @11:20PM (#66181544)
    (Almost) anyone with a (401k) ETF will end up owning Space X and OpenAI and Anthropic now that NASDAQ will add those companies to Nasdaq 100 (and many ETFs include the Nasdaq in their portfolio). If you don't want your investments to be subject to the various flavors of the month, move your money quickly. Or ride the ride (it will be wild).

    • I like XMAG as an ETF because it's SPY minus the Magnificent 7. I don't know if these AI companies are going to end up in the SPY but if they do, I hope the managers at XMAG will add them to the exclusion.

  • payday (Score:4, Interesting)

    by Tom ( 822 ) on Tuesday June 09, 2026 @12:42AM (#66181598) Homepage Journal

    and a massive payday for early investors

    That seems to be the goal of all these massive IPOs recently. For early investors to cash out before the bubble bursts.

  • Retail investors (Score:5, Insightful)

    by Alarash ( 746254 ) on Tuesday June 09, 2026 @05:27AM (#66181754)

    It's not a surprise all of those three are filling for IPO roughly at the same time. As the AI hype is starting to weaken and the bubble is closer to bursting (40% of the S&P500 is about AI investment, an insanely disproportionate share historically), the early investors (which I'm surprised are even mentioned) need to cash in while the companies are overvaluted in order to make money. They'll swoop back in when the share price is at its lowest and reflects more accurately the values of these companies. In the meantime, the retail investors (that is, the general population who are not aware of all this and only listen to the hype of AI and not the economists who say the contrary) will be left holding the bag.

  • funding OpenAI
  • Even without considering Altman's evilness, OpenAI will disappear as soon as another AI provider provides a similar or better service and advertises enough.

    Whatever you think about Musk, the fact is that Spacex has no competitors in launchers, it's not even close.

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