OpenAI wants a trillion-dollar debut. Here's how it stacks up against history's biggest IPOs
OpenAI has filed confidentially for an IPO targeting a valuation of up to $1 trillion, joining rivals Anthropic and SpaceX in pursuing record-breaking public offerings, while a review of history’s largest IPOs shows mixed long-term investor returns for companies like Saudi Aramco and Alibaba.
OpenAI, the creator of ChatGPT, has filed confidentially for an initial public offering (IPO) with a potential valuation of up to $1 trillion, positioning it among the most anticipated stock market debuts in history. The move follows Anthropic’s IPO filing after a $965 billion funding round and SpaceX’s pursuit of what could become the largest public offering ever if completed. The prospect of these trillion-dollar listings has renewed global interest in IPOs, though past records show uneven outcomes for investors. Saudi Aramco’s 2019 IPO, the largest ever at $25.6 billion and a $1.7 trillion valuation, initially surged but now trades below its peak, closing at 27.16 riyals ($7.24) on June 8. Despite falling short of Crown Prince Mohammed bin Salman’s $2 trillion target, Aramco’s debut saw shares hit a 10% daily trading limit on the Tadawul exchange. Before Aramco, Alibaba held the title for the world’s biggest IPO in 2014, raising $21.8 billion and debuting at $68 per share, later closing at $93.89. The Chinese e-commerce giant’s valuation soared to $231 billion on its first day, and it remains a major tech player, with shares closing at $120.07 on June 8. Analysts at the time, including Morningstar, predicted even higher valuations, reflecting strong investor confidence. Other historic IPOs, such as those by Visa, Agricultural Bank of China, and SoftBank, also saw significant initial valuations but varied performance over time. Renaissance Capital’s analysis highlights that while mega-IPOs capture headlines, their long-term success depends on market conditions, company fundamentals, and investor sentiment. OpenAI’s potential $1 trillion valuation would surpass previous records, but its success hinges on market reception and sustained growth. The company’s IPO filing, along with those of Anthropic and SpaceX, signals a shift toward high-profile tech and space sector listings, though past examples underscore the volatility of such debuts.
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