OpenAI's IPO Ambitions Hit the Brakes

The biggest story shaking tech stocks Friday was a single headline: OpenAI is leaning toward delaying its IPO until next year. Shares of Japanese NAND flashmaker Kioxia slid 12% on the news, and the ripple effects spread across the sector. The maker of ChatGPT had hired bankers and lawyers with an eye toward a public offering, with CEO Sam Altman pushing advisors to find a way for the startup to be valued at $1 trillion — up from its last private valuation of $730 billion. But a cascade of recent developments has caused OpenAI executives to shift away from their most aggressive aspirations.

What Went Wrong with the IPO Timeline

Top of mind is what happened to Elon Musk's SpaceX after its IPO this month. It was the largest ever, raising more than $85 billion and reaching a valuation of $1.77 trillion on its debut. Since then, SpaceX's stock has been on a downward slide, with shares slumping to $153 at the end of Thursday after reaching a high of $202 last week. Global markets have also been choppy in recent weeks, causing OpenAI's advisors — in conversations with the company over the past week — to caution that it may not find much enthusiasm from investors right now.