OpenAI could be the first trillion-dollar IPO, expert says

Daniel Newman, CEO of Futurum Group, explains why he thinks OpenAI could be the first to reach the mark.

Transcript

00:00When we think about the valuation of OpenAI, it just hit, what, $500 billion?

00:06Do you look at that as justified, or do you look at it and think another bubble could be forming?

00:13This one I struggle with.

00:15When you know that OpenAI's valuation surpasses so many companies,

00:19very legitimate companies that lead industries, entire industries,

00:23you start to say, wow, is there a bubble forming?

00:26But then at the same time, when you see this insatiable demand, this insatiable need for AI,

00:32you see how fast the revenue is growing, and you look at the alternatives.

00:36I shared something on X the other day, and I said,

00:38I think OpenAI is setting up to be the first trillion-dollar IPO.

00:42I think it will be a trillion dollars when it goes public.

00:45And it's all based on what people believe it can do in the future,

00:48and it just shows how much more the market is forward-looking.

00:52Other industries still have so many questions about what their long-term looks like.

00:55AI seems to be the one industry that everybody agrees that there's going to be this incredible demand,

01:00this incredible scale, but there is exuberance right now, for sure.

01:04There's a frothiness in the market that I think everybody has to at least be realistic,

01:08that there could be a big pullback at some point.