OpenAI Completes $7 Billion Share Sale as It Eyes Trillion-Dollar IPO

Corporate Action Impact 4
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OpenAI has completed a roughly $7 billion employee share sale at an $852 billion valuation, with the company itself buying shares from current and former employees to provide liquidity. This comes as the ChatGPT creator prepares for an initial public offering, having submitted a confidential registration statement in June and now reportedly deciding whether to delay a potential $1 trillion listing until 2027 or go public sooner at a lower price. A $1 trillion valuation would be about 17.4% above the employee tender valuation, but the company's financials raise concerns: it generated $5.7 billion in revenue in the first quarter, implying annualized sales of $22.8 billion and a price-to-sales ratio of roughly 44 times at a $1 trillion valuation, or about 37 times at $852 billion. OpenAI's net loss widened from $9.3 billion in Q1 to $12.3 billion in Q2, outpacing its sales growth, and the company remains unprofitable with costs scaling alongside revenue. Despite nearly 7 in 10 investors surveyed saying they would buy OpenAI or Anthropic stock, the author remains skeptical about the company's ability to turn growth into sustainable profits.

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Artificial Intelligence · 1 stocks

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OpenAIPrivate± Mixed
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OpenAI completes $7B share sale at $852B valuation, preparing for IPO; financials show widening losses and high valuation concerns

AnthropicPrivate± Mixed
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