OpenAI Is Now Considering a 2027 IPO With a $1 Trillion Valuation. Should Investors Expect the Same Volatility as the SpaceX IPO?
OpenAI is trying to avoid a volatile IPO. It probably won't succeed.
Overview
OpenAI is reportedly considering delaying its IPO until sometime next year. The company has already filed the preliminary paperwork to go public, so the potential delay is a bit of a disappointment to investors who are waiting to invest in the AI juggernaut.
The New York Times reported that advisors to OpenAI CEO Sam Altman are telling him that the recent volatility in Space Exploration Technologies' (NASDAQ: SPCX) IPO indicates that now is not a good time for AI companies to go public.
Details
SpaceX stock, after opening at $150 per share on its IPO debut and rising as high as $225 a few days later, is now back down to around $156, as of this writing. Cerebras, another recent IPO by an AI company, also experienced a huge spike on its IPO day, only to see its shares remain volatile in the following weeks.
Source
Originally published at www.fool.com.