OpenAI, the creator of ChatGPT, may not go public this year after all. According to The New York Times, the company's advisors are pushing it to either lower its ambitious valuation target or postpone its stock market debut until 2027. The news has sent ripples through global markets, highlighting just how much investor sentiment is tied to the AI boom.
What's behind the delay?
OpenAI had been planning an initial public offering (IPO) this year, aiming for a valuation of around $1 trillion. That would have made it one of the most valuable companies to ever go public. But the company's last private valuation, set in February, was $730 billion — and growth has slowed since then.
The firm has struggled to tap into business customers, unlike rival Anthropic, which has gained traction with enterprise clients. And despite ChatGPT's widespread popularity, the product has yet to turn a profit. That has raised questions about whether a trillion-dollar valuation is realistic.
IPO valuations are typically based on a company's current financial performance and future growth prospects. When growth slows and profitability remains out of reach, investors become less willing to pay a premium. OpenAI's advisors appear to be acknowledging that reality by suggesting a lower valuation or a longer wait.
Global market fallout
The potential delay has already had a significant impact on Asian markets. SoftBank, one of OpenAI's biggest backers, saw its shares fall 13% on the news. That dragged Japan's Nikkei 225 index down 4%, while South Korea's tech-heavy Kospi dropped nearly 6%.
These moves show just how much of those markets are tied to the AI trade. SoftBank has been a major investor in AI companies through its Vision Fund, and its fortunes are closely linked to the sector's performance. When a key AI player like OpenAI hits a roadblock, it sends a signal that the entire AI ecosystem may be overvalued.
For a deeper look at how this affected broader markets, see our coverage of the Tech Stocks Slide as OpenAI IPO Delay Raises AI Valuation Concerns and the Nikkei 225 Plunges 3.7% on OpenAI IPO Delay Fears.
The bigger picture: AI infrastructure spending
OpenAI and other huge tech companies are all spending enormous sums on AI infrastructure — $800 billion this year, according to industry estimates. A big chunk of that goes toward memory chips, and the demand has sent prices for all kinds of chips soaring.
PC-maker Lenovo warned on Friday that high chip prices will be the "new normal" through 2030. That's great news for memory companies like Micron, SanDisk, Kioxia, and SK Hynix, which have been some of the world's best-performing stocks this year. But it's not so great for anyone buying everyday electronics — or for the companies selling them.
Nintendo's shares are down 38% this year as higher costs eat into its margins. Apple's plans to raise product prices sent its stock down 6% on Thursday. For investors, this means the AI boom is creating winners and losers beyond just the tech sector.
What it means for investors
For everyday investors, the OpenAI IPO delay is a reminder that even the most hyped companies face real-world challenges. An IPO is a way for a private company to raise money by selling shares to the public. When a company delays its IPO or lowers its valuation, it often signals that the market is not willing to pay as much as the company hoped.
This doesn't mean OpenAI is in trouble — it's still a highly valuable company with a popular product. But it does suggest that the AI sector may be entering a more realistic phase, where investors are looking for actual profits rather than just promise.
If you're invested in AI-related stocks, keep an eye on how companies are spending their money and whether they're generating real revenue. The days of unlimited optimism may be giving way to a more cautious approach.
For more context on the regulatory landscape, check out our article on the US Government Seeks Veto Power Over Early Access to OpenAI's GPT 5.6.
