Big moves are brewing in Silicon Valley.

OpenAI—the company behind ChatGPT—is reportedly in the early stages of preparing for an initial public offering (IPO).

This could mark one of the most pivotal moments in the AI era, potentially reshaping how the tech industry operates and invests in artificial intelligence.

Here’s what’s happening—and why it matters.

$260 Billion Dream

For those who don’t know - OpenAI was originally founded as a non-profit research lab in 2015. Since then, the company has evolved into one of the most influential players in AI, with Microsoft as its biggest backer—contributing over $13 billion since 2019.

Now, OpenAI wants to restructure itself as a public benefit corporation (PBC)—a hybrid setup that still upholds a mission to “benefit humanity,” while also allowing it to issue equity and raise funds through traditional capital markets.

Why it matters: This new structure is a green light for going public. An IPO could provide the capital needed to maintain OpenAI’s breakneck development pace—and to compete with other tech giants entering the AI race.

The role of Microsoft

OpenAI and Microsoft are in the midst of high-stakes talks to revise their original agreement. The existing contract runs through 2030, granting Microsoft exclusive access to OpenAI’s IP, product revenue, and deep Azure integration.

But the future might look different.

• Equity Shuffle: Microsoft may reduce its stake in exchange for extended IP access post-2030.

• Access Renegotiation: New terms would determine what Microsoft gets in return for its multi-billion dollar investments.

• Strategic Distance: Despite deep ties, there’s been a noticeable “cooling” between the two companies as OpenAI pushes for more independence.

Non-Profit & for profit at the same time?

OpenAI’s unique structure is one of the most talked-about aspects of this story. Originally a nonprofit, the company added a capped-profit business arm in 2019 to attract funding. Now it wants to go further.

The plan? Retain nonprofit oversight—but convert its business unit into a public benefit corporation. This would let OpenAI offer equity to investors, while still pledging to uphold its original mission.

However, the path forward isn’t simple. Legal approval is needed from authorities in California (where OpenAI is based) and Delaware (where it's incorporated). Critics, including Elon Musk, argue that the new model strays too far from OpenAI’s original purpose.

What’s Next?

If OpenAI goes public, it would be one of the most closely watched IPOs in tech history. It could:

• Signal a new phase of AI commercialisation, with OpenAI no longer operating under the constraints of a nonprofit.

• Open doors for retail and institutional investors to directly back AI development.

• Set a precedent for how other mission-driven tech firms might pursue public funding while retaining some control over their social goals.

Talks with Microsoft are ongoing, and a formal IPO filing isn’t expected immediately. But all signs point to OpenAI laying the groundwork now—with internal restructuring, leadership hires (including new execs for consumer apps), and infrastructure plans like the “Stargate” supercomputing initiative.

Whether OpenAI can maintain its balance between profit and purpose remains to be seen. But one thing is certain: this is a turning point.

The AI lab that started as a moonshot idea is now preparing to enter the public markets.

This Week in AI

• Trump fires head of copyright office after release of AI report

• Apple sees iPhones getting replaced by AI

• Apple is also developing chips for AI Servers