$1 Trln IPO Valuation! Can OpenAI Raise So Much & Pay for AI Complex?

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10-30
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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?

Leave your comments to win tiger coins~


OpenAI Family Expanding: Is It A Blessing or A Curse?
OpenAI has been insanely busy lately — one moment it’s doing e-commerce, the next it’s getting into social, and now it’s even launching a browser. It announced plans to deploy 6GW of AMD Instinct GPUs. OpenAI went a step further and partnered with Broadcom to develop custom ASIC chips. Microsoft mainly provides OpenAI’s training compute, while Oracle handles inference workloads. Meanwhile, PayPal officially announced a partnership with OpenAI yesterday — its stock spiked but later gave back most of the gains by the close.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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Comments

  • Shyon
    10-30
    Shyon
    If OpenAI really goes public at a $1 trillion valuation, I’d be keen to join the IPO. As the face of this AI boom and a core player in global infrastructure through ties with Nvidia $NVIDIA Corp(NVDA)$ , Oracle $Oracle(ORCL)$ , and AMD $Advanced Micro Devices(AMD)$ , OpenAI’s debut would likely see huge investor demand and a strong early surge, given how hot the AI theme is right now.

    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

  • koolgal
    10-31
    koolgal
    🌟🌟🌟Exciting times are ahead for OpenAI as it prepares for a historic USD 1 Trillion IPO by 2026 to 2027, aiming to raise over USD 60 billion to fund its ambitious AI Complex - A global infrastructure for Artificial General Intelligence.

    This IPO is so exciting because the IPO could value the company at up  to USD 1 Trillion which would make it one of the largest tech debuts in history.

    OpenAI was founded with a mission of achieving Artificial General Intelligence.  The prospect of a publicly traded company dedicated to this goal, would make it a major event for the tech world and investors.

    I believe that this would be the most important IPO of the decade.  This isn't just a financial event.  It is a legacy moment. OpenAI is raising more than capital.  It is raising the bar for what is possible - a world powered by AI.

    @Tiger_comments @TigerStars @Tiger_SG @TigerClub @CaptainTiger

  • 1PC
    10-30
    1PC
    Open AI IPO 😱.. when! Lets go, I'm keen 😉😄. $1 trillion valuation, too little. Lets do $1.1 trillion [Surprised]. @Barcode @JC888 @Shernice軒嬣 2000 @koolgal @DiAngel @Aqa @Shyon
    • koolgal: 
      To the moon🚀🚀🚀🌛🌛🌛💰💰💰
  • Mrzorro
    11-03
    Mrzorro
    If OpenAI has an IPO, for sure I will join! I believe it is a blessing for the market.  $1 trln IPO valuation is just the beginning! It will bring a big wave to the AI giants' market [Miser]
  • BTS
    11-01
    BTS
    OpenAI could theoretically hit a $1 trillion valuation if it manages demand and infrastructure costs, but the high-risk nature of AI could make it difficult to sustain long-term if costs outpace revenue

    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。。。
    Tag :
    @Huat99
    @Snowwhite

  • Lanceljx
    10-31
    Lanceljx
    OpenAI is both a blessing and a caution for markets. It’s a blessing because it fuels global innovation, productivity, and capital flow into AI infrastructure — benefiting firms like NVIDIA, Microsoft, and AMD. But it’s also a curse if unchecked hype inflates valuations faster than profits materialise.

    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.

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