Did you know Open AI IPO may be a great investment, but could it push the AI bubble? The AI bubble refers to the fact that AI investment is unsustainable, and its bursts could potentially lead to a recession. Open AI, a private company, is curating a potential Initial Public Offering (IPO) to raise funds for further investment, which could burst the bubble. The company requires investments as it has been experiencing financial losses since the AI investment boom in 2022/2023, and has reported a loss of around 13.5 billions dollars, including operating loss of 7.8 billions dollars, and cash burn of 2.5 billion dollars in 2025.

Sam Altman, Open AI CEO has spoken out about a potential IPO, as capital is required for expansion of AI infrastructure, and other investments. The IPO is expected to value the company at approximately $1 Trillion, and could be one of the biggest IPOs ever launched. The IPO is expected to be launched in 2027, but it could occur as early as of the second term of 2026.

In terms of the economy, the IPO will further push investment in the AI market, and further inflate the AI bubble. AI investment has been so high, that 80$ of US stock markets gains come from AI companies.
This IPO is going to further push the bubble, as it will increase the amount of stocks people own, in regards to AI.

How bad would the effects be? The effects if the bubble does burst would be tragic. The current bubble is 17 times the size of the dot com bubble, and 4 times the subprime mortgages of 2007. If we assume a 1:1 ratio, between 2007-2009 8.6 millions jobs were dropped, meaning that the AI bubble could drop approximately 17.6 millions jobs in the USA alone.

The issue of AI is that it’s causing the US GDP growth to be too reliant on it. 40% of real US GDP growth last quarter was due to tech capex (investment in tech assets), and AI investments. Additionally, 92% of GDP growth in the USA in the first half of 2025, was due to investment in “information processing equipment & software”. As the US economy continues to grow more reliant on AI development and tech investments for GDP growth, the economy is placed in a vulnerable position to the potential bubble burst. Thus, it is evident that an IPO by OpenAI will further expand the bubble.









Works Cited
Cai, Kenrick, et al. “Exclusive: OpenAI lays groundwork for juggernaut IPO at up to $1 trillion valuation.” Reuters, 30 October 2025, https://www.reuters.com/business/openai-lays-groundwork-juggernaut-ipo-up-1-trillion-valuation-2025-10-29/. Accessed 8 November 2025.
“OpenAI's H1 2025: $4.3b in income, $13.5b in loss.” Tech in Asia, 30 September 2025, https://www.techinasia.com/news/openais-revenue-rises-16-to-4-3b-in-h1-2025. Accessed 8 November 2025.
Roberts, Michael. “The AI bubble and the US economy.” CADTM, 16 October 2025, https://www.cadtm.org/The-AI-bubble-and-the-US-economy. Accessed 8 November 2025.