$1 Trln IPO Valuation! Can OpenAI Raise So Much & Pay for AI Complex?
According to Reuters, OpenAI Prepares for IPO at $1 Trillion Valuation
From 2026 onward, OpenAI’s commercialization capabilities will no longer be just the concern of early investors—they will become the lifeline of a trillion-dollar industrial chain.
OpenAI needs to grow as fast as Nvidia to achieve its wildest dream.
In a situation where OpenAI’s revenues and expenditures are severely mismatched, the ecosystem associated with OpenAI is undoubtedly the largest risk in the industry.
Although ChatGPT already has 800 million users and its user growth surpasses all previous successful internet platforms, what is growing even faster than user numbers is the underlying computing power demand and the supply orders OpenAI has already committed to.
1. Stargate Project: Deep Integration with SoftBank and $Oracle(ORCL)$
The most complex collaboration ecosystem is OpenAI’s Stargate project, which deeply links OpenAI with Oracle, Nvidia, SoftBank, and other companies. The market criticizes this for “capital recycling”.
Their data center GPU chips are mostly purchased from Nvidia. The earliest operational facility, Abilene, uses nearly all Nvidia products, including—but not limited to—the GB200, GB300, and VR200 series.
As the partner most tightly bound to OpenAI, $Oracle(ORCL)$ has also staked its fortunes. The upside is that future revenue growth is almost entirely determined by OpenAI, which will try to direct the bulk of computing power orders to Oracle—for example, a 300 billion USD order over five years starting in 2027. This explains the “explosive” long-term growth guidance in Q2 earnings calls and the “bold” upward adjustments announced at the AI World conference.
2. Collaboration with $NVIDIA(NVDA)$ Secures $100 Billion Investment
At the end of September, Nvidia further deepened its financial ties with OpenAI through staged investments (10 billion USD per 1GW deployed), totaling 100 billion USD in “rebates” to OpenAI.
Nvidia also received corresponding OpenAI equity (calculated in stages, with the shareholding ratio capped at 10% as long as OpenAI’s valuation continues to rise), strengthening their mutual interests.
3. Collaboration with $Advanced Micro Devices(AMD)$ : Deploying 1GW GPU and Receiving 160 Million Warrants
OpenAI announced plans to deploy 6GW of AMD Instinct GPUs through cloud providers over the next five years. The first batch will be 1GW of AMD Instinct MI450 GPUs. This strategy of “backup partner” helps avoid being trapped by over-dependence on a single supplier.
In return, AMD will issue up to 160 million warrants to OpenAI in six batches (equivalent to 10% of current equity), at an exercise price of 1 cent—essentially free. Except for the sixth batch, which requires AMD to reach a market cap of 1 trillion USD (roughly double the current share price), the other warrants are structured such that OpenAI could convert them to cash to pay for AMD chips without significantly impacting its cash flow.
4. Collaboration with $Broadcom(AVGO)$ for Custom ASICs
Not content with backing up Nvidia, OpenAI has sought a further contingency by working with Broadcom to develop custom ASICs with 10GW of computing power, mainly for proprietary inference tasks. Deployment is planned to start in the second half of next year, with full computing power construction expected by the end of 2029.
Broadcom’s ASICs are likely to be deployed at Stargate (mostly operated by Oracle) or Oracle data centers. AMD GPUs may occasionally be deployed at Microsoft, as OpenAI’s collaboration with AMD only rolls out the MI450 in late 2026 for training purposes.
While this may appear to be OpenAI anxiously securing compute supply, it could also be a strategic balancing act—locking in key partners early and strengthening the entire ecosystem.
Is OpenAI a blessing or a curse for the market?
How do you view $1 trln IPO valuation?
Would you join the IPO? If possible?
Is AI giants’ capital game a warning sign for market?
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That said, I’m aware of the risks. OpenAI’s massive spending and reliance on key partners could strain finances if growth slows. But with 800 million ChatGPT users and fast enterprise adoption, its long-term potential still looks powerful—possibly echoing Nvidia’s earlier breakout.
In my view, OpenAI’s IPO marks both an opportunity and a stress test for the entire AI sector. Despite concerns of market overheating, I’d still want a piece of it—it’s a rare chance to ride the next wave of trillion-dollar innovation.
@TigerStars @Tiger_comments
这次IPO非常令人兴奋，因为IPO可能使该公司估值高达1万亿美元，这将使其成为历史上最大的科技公司之一。
OpenAI成立时以实现人工通用智能为使命。致力于这一目标的上市公司的前景将使其成为科技界和投资者的一件大事。
我相信这将是十年来最重要的IPO。这不仅仅是一个金融事件。这是一个遗产时刻。OpenAI筹集的不仅仅是资本。它正在提高可能性的标准——一个由人工智能驱动的世界。
@Tiger_comments @TigerStars @Tiger_SG @TigerClub @CaptainTiger
OpenAI may be a blessing for productivity and innovation, but a curse for labor markets and those concerned about speculative bubbles
A $1 trillion valuation is ambitious but possible, relying on revenue growth and cost management, though it is risky due to the speculative nature of the market
Investors may want to join cautiously, given the growth potential of AI, but should be wary of inflated valuations and speculative risks without clear long-term strategy
The massive investments in AI are exciting but could signal overhyped valuations, monopoly risks, and ethical concerns in the future。。。
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@Snowwhite
A $1 trillion IPO implies massive expectations — pricing perfection. It assumes OpenAI dominates AI software, cloud, and enterprise solutions with high margins. That’s ambitious, considering hardware costs, competition, and regulation.
If I could join the IPO, I’d take a small, speculative stake, not a core position — treat it like early Tesla or Nvidia, with long-term patience but readiness for volatility.
The current AI capital race is both opportunity and warning. Massive capex and fundraisings can spark innovation, but also risk bubble dynamics if returns lag. Smart investors should stay selective — chase innovation, not hype.
A $1 trillion IPO implies massive expectations — pricing perfection. It assumes OpenAI dominates AI software, cloud, and enterprise solutions with high margins. That’s ambitious, considering hardware costs, competition, and regulation.
If I could join the IPO, I’d take a small, speculative stake, not a core position — treat it like early Tesla or Nvidia, with long-term patience but readiness for volatility.
The current AI capital race is both opportunity and warning. Massive capex and fundraisings can spark innovation, but also risk bubble dynamics if returns lag. Smart investors should stay selective — chase innovation, not hype.
Check them in the history - “community distribution“
Did the stock market go up? Did you make money? If the answer is YES! the. Open AI is a blessing.
They will have to open up their books to investors... that will reveal information about what goes on behind the curtain.
I get the sick filling in my stomach that OPENAI might be worsening the bubble though. Considering how Chinese AI companies could catch up with inferior tech, it makes me seriously question if OPENAI would really be viable, and whether the bubble burst really wouldn't take them down (are they really too big to fail?). Feels a little like hubris.
他们的数据中心GPU芯片大多采购自英伟达。最早的运营工厂Abilene使用几乎所有Nvidia产品，包括但不限于GB200、GB300和VR200系列。
從2026年起，OpenAI的商業化能力將不再僅僅是早期投資者關心的問題——它們將成爲一條萬億產業鏈的生命線。
OpenAI需要像英偉達一樣快速增長，才能實現其最瘋狂的夢想。