OpenAI Is Making Plans to File to Go Public Very Soon

Summary

WSJ What’s News – PM Edition

Episode Title: OpenAI Is Making Plans to File to Go Public Very Soon
Date: May 20, 2026
Host: Alex Osila, The Wall Street Journal
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Episode Overview

This episode spotlights OpenAI's imminent plans to file for an IPO, breaking news about SpaceX’s own IPO filing, and significant developments in both the tech and political spheres. It covers market reactions (especially around Nvidia), major legal moves by the US government, and pivotal business updates from companies like Target and Meta. There’s also coverage of Harvard’s plan to cap the number of A grades in an effort to curb grade inflation.

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Key Discussion Points and Insights

1. OpenAI’s Accelerated IPO Plans

(00:33–03:32)

• Breaking News: OpenAI, the company behind ChatGPT, is poised to file for an IPO as soon as this week, targeting a public debut possibly as early as September.
  • “The company's goal is to be ready to go public as early as September.” (Alex Osila, 01:11)
• Surprising Timing: WSJ’s Berber Jin notes the rapid pace is unexpected, as earlier reporting suggested a later timeline.
  • “The timing came as a really big surprise to everyone…to file a confidential prospectus as soon as this Friday really suggests that they are looking to go basically as soon as possible.” (Berber Jin, 01:44)
• Why Now?
  • Competitive Race: OpenAI is vying with Anthropic and SpaceX to capture investor attention in a hot AI IPO market.
    • “Each of these different companies see the advantage of being the first or the second to go out and kind of set the narrative around their business ahead of their rivals.” (Berber Jin, 02:14)
  • Investor Demand: There’s significant interest among both retail and institutional investors to invest in AI.
• Operational Challenges:
  • Financial Strains: OpenAI faces pressure over $600 billion in data center commitments through 2030 and has missed some internal revenue targets.
  • Competition: Intense competition from Anthropic and Google adds further uncertainty.
    • “The really big question mark is whether they can get the business in a good enough shape and accelerate their revenue growth in order to tell a story to investors to Wall Street.” (Berber Jin, 03:11)

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2. Tech & Market Movements

(03:36–05:45)

• SpaceX IPO: Breaking news—SpaceX’s IPO paperwork has been made public, revealing key financial details. (03:36)
• Meta Layoffs: Meta is laying off 10% of its staff (about 8,000 jobs) to help fund its AI initiatives, while many other staff are being reassigned to AI projects.
• Chip Market Volatility:
  • Chip stocks, which previously rallied, have seen a volatile spell. Investors look to Nvidia for market direction.
    • “It's almost a make or break moment for whether this chip rally can continue...” (Jared Mitovitch, 04:23)
• Nvidia’s Earnings:
  • Nvidia reported record quarterly sales (up 85% to $81.6 billion), beating Wall Street’s expectations and driven by demand for AI and data center chips.
• Market Impact:
  • The Nasdaq led gains, up 1.5%, as markets anticipated Nvidia’s earnings and SpaceX’s IPO disclosures.

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3. Legal and Political Updates

(06:19–08:09)

• Raul Castro Indicted (06:19–07:11):
  • The Trump administration has secured an indictment against Raul Castro, Cuba’s former president, over the 1996 shootdown of civilian planes.
    • “For the first time in nearly 70 years, senior leadership of the Cuban regime has been charged… for acts of violence resulting in the deaths of American citizens.” (Todd Blanche, 06:45)
  • The indictment is a significant escalation in US pressure on Cuba but it’s unlikely Castro will face trial in the US.
• Weaponization Fund Lawsuit: Two police officers filed a lawsuit challenging the administration’s “anti-weaponization fund,” criticized across the political spectrum.
• Senate “YOLO Caucus” & Ballrooms Funding: With Senate Republicans lacking the votes on President Trump’s ballroom project, a group of outgoing lawmakers (“YOLO caucus”) emerges, willing to oppose Trump.
• Major Housing Bill Advances:
  • House passes a bill restricting institutional investment in single-family homes, but drops a provision unpopular with housing developers.

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4. Corporate Earnings & Strategy

(08:09–10:22)

• Target’s Turnaround:
  • Target posted its strongest quarterly sales rise (5.6%) since early 2022, signaling some success in new CEO Michael Fidelke’s turnaround strategy.
    • “When Fidelke took over, he was very clear that really the number one thing they need to be doing is getting back to style and design and uniqueness in their product assortment.” (Sarah Nassauer, 09:19)
  • Improvements in product differentiation (especially baby and toys), supply chain, and customer service are beginning to show results.
• Market Reaction: Target’s stock still fell 4%, reflecting investor caution over uncertainty and the costs involved in the turnaround.
  • “Also, the changes that Target is making are expensive. So I think investors are dealing with a really uncertain environment.” (Sarah Nassauer, 10:02)

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5. Notable Obituary

(10:28–10:54)

• Barney Frank:
  • The influential Massachusetts Congressman passed away at 86.
  • Noted for co-authoring the post-2008 Dodd-Frank financial reforms, and as the most prominent openly gay American politician of his era.

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6. Harvard to Limit A Grades

(10:54–11:30)

• Effort to Curb Grade Inflation:
  • Harvard faculty voted to cap the proportion of A grades per course to 20%, down from roughly 60% in recent years.
  • The cap doesn’t apply to A-minuses, expected to become the most common grade.
  • “Harvard's faculty voted to cap the number of A's per course to 20%. The change is part of the college's years long effort to curb grade inflation.” (Alex Osila, 10:54)

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Notable Quotes & Memorable Moments

• On competition among AI firms:
  • “Each of these different companies see the advantage of being the first or the second to go out and kind of set the narrative around their business ahead of their rivals.”
    (Berber Jin, 02:14)
• On the stakes for AI-related stocks:
  • “It's almost a make or break moment for whether this chip rally can continue…”
    (Jared Mitovitch, 04:23)
• On Harvard’s new grading policy:
  • “Harvard's faculty voted to cap the number of A's per course to 20%. The change is part of the college's years long effort to curb grade inflation.”
    (Alex Osila, 10:54)
• On US charges against Cuban leadership:
  • “Nations and their leaders cannot be permitted to target Americans, kill them and not face accountability.”
    (Todd Blanche, 07:01)

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Key Timestamps

• 00:33 — Top headlines, including OpenAI IPO plans
• 01:44 — Analysis of OpenAI’s IPO timing (Berber Jin)
• 02:46 — OpenAI’s financial and competitive challenges
• 03:36 — SpaceX IPO filing & Meta layoffs
• 04:23 — Market update and Nvidia’s pivotal moment (Jared Mitovitch)
• 04:57 — Nvidia’s earnings and chip’s effect on the market
• 06:19 — Raul Castro indictment explained
• 09:19 — Target’s turnaround efforts (Sarah Nassauer)
• 10:02 — Why Target’s stock fell, despite good results
• 10:28 — Barney Frank’s obituary
• 10:54 — Harvard’s new grading policy

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Episode Flow & Tone

The episode is brisk, newsy, and insightful—matching the Wall Street Journal’s trademark style. The reporting is direct, with key insights and analysis provided by WSJ correspondents, who keep language precise, clear, and grounded in data and financial impact.

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This thorough snapshot covers all essential news, insights, and color from the PM edition—ideal for listeners who want to stay well-informed without missing critical context on the stories shaping the business and political worlds.

Transcript

[IBM Narrator]

So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now a global workforce of 300,000 can use AI to fill their HR questions, resolving 94% of common questions, not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM.

[Alex Osila]

OpenAI plans to file for an IPO maybe as soon as this week. Plus, the Trump administration charges Cuba's former president Raul Castro with murder, escalating its campaign against the country's communist regime.

[Todd Blanche]

For the first time in nearly 70 years, senior leadership of the Cuban regime has been charged in this country, in the United States of America for acts of violence resulting in the deaths of American citizens.

[Alex Osila]

And it's about to get a lot harder to earn an A at Harvard. It's Wednesday, May 20th. I'm Alex Osila for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world. Today, we're exclusively reporting that OpenAI, the company behind ChatGPT, is preparing to file for an IPO very soon, possibly as soon as this Friday. The Journal has learned that the company's goal is to be ready to go public as early as September. Berber Jin covers startups and venture capital and joins me now. Berber, a September IPO. Was this the timing that OpenAI had been expecting? Like what helped determine this timing?

[Berber Gin]

The timing came as a really big surprise to everyone because we knew from our reporting that OpenAI was targeting a listing by the end of this year. But to file a confidential prospectus as soon as this Friday really suggests that they are looking to go basically as soon as possible. It's hard to know exactly why they're rushing, but what we do know more broadly speaking is that they're competing against Anthropic and to a certain extent SpaceX to capture the mind share of big pockets of money in the public markets that are looking to invest in AI companies. And each of these different companies see the advantage of being the first or the second to go out and kind of set the narrative around their business ahead of their rivals. There's a lot of pent up demand amongst retail investors and institutional investors like hedge funds, pension funds, et cetera, to invest in these AI companies.

[Alex Osila]

What other kinds of challenges does the business face?

[Berber Gin]

There's been a lot of uncertainty recently about whether OpenAI will be able to pay for these giant data center spending commitments. They've signed up for roughly $600 billion of spending that they're on the hook to pay through 2030. And we've reported that OpenAI has recently had some stumbles. They've missed a few internal revenue targets. They've come under very intense competition from Anthropic and Google. The really big question mark is whether they can get the business in a good enough shape and accelerate their revenue growth in order to tell a story to investors to Wall street, where people feel like their finances are in good condition and that they will be able to pay for these giant competing contracts that they signed up for.

[Alex Osila]

That was WSJ reporter Berber Gin. Thanks Berber.

[Berber Gin]

Thank you.

[Alex Osila]

And breaking news this afternoon. The IPO paperwork for SpaceX was just made public unveiling key financial details. Read more on WSJ.com separately in tech meta has begun a big round of layoffs. The cuts of roughly 8,000 jobs, or 10% of the company's staff, are meant to offset the cost of Meta's AI buildout. It's also reassigning thousands of other workers to AI focused jobs. The massive gains in chip manufacturers from South Korea to Silicon Valley have hit a volatile stretch over several weeks. The rally in chip stocks has helped pull the market out of its Iran war funk, but semiconductor stocks slid on Friday and Monday. Journal reporter Jared Mitovitch says investors are now looking to Nvidia for direction.

[Jared Mitovitch]

There's a lot on the line here. It's almost a make or break moment for whether this chip rally can continue or whether that blip that we saw ending earlier this week could be signs that this rally is petering out a little bit. Investors are really looking for what Nvidia's outlook is, not only in 2027, but even beyond that, what their spending looks like and where they see their business going later on this decade. There's almost no question that the AI build out is succeeding and going to benefit companies like Nvidia in the next 12 to 18 months. But now you're seeing traders scratch their heads and say, what happens after? Then? You know, where does this go Next

[Alex Osila]

Reporting after the Bell chip giant Nvidia said it had record sales and profit in its most recent quarter. Sales rose 85% to $81.6 billion, beating Wall Street's expectations. Surging demand for data center computing and the astronomical rise of artificial intelligence agents drove its earnings. Stock indexes climbed today as investors waited to hear those earnings from Nvidia and for the SpaceX IPO paperwork to be publicly revealed. The Nasdaq led the gains and closed up 1 1/2 percent. Coming up, Target reported its strongest sales gains in years as its new CEOs turnaround efforts take hold. So why was it stock down today? More on that after the break.

[IBM Narrator]

Some of the best lessons don't come from a classroom. They come from experience on the Power of Advice, a new podcast series from Capital Group. You'll hear from CEOs, investors and founders about how they built careers, took risks and reinvented themselves. If you're starting your own journey, this is the kind of advice you won't want to miss. Available wherever you get your podcasts published by Capital Client Group Inc.

[Alex Osila]

Now for some legal news. The Trump administration has secured an indictment against Raul Castro, a leader of the Cuban Revolution and the country's former president. The charges relate to when the Cuban military shot down civilian planes flown by the humanitarian group Brothers to the rescue in 1996. Castro was defense minister at the time. U.S. acting Attorney General Todd Blanche announced the charges, which include murder, during a press conference in Miami this afternoon.

[Todd Blanche]

For the first time in nearly 70 years, senior leadership of the Cuban regime has been charged in this country, in the United States of America for acts of violence resulting in the deaths of American citizens. Nations and their leaders cannot be permitted to target Americans, kill them and not face accountability.

[Alex Osila]

Current and former officials don't expect Castro to be sent or taken by force to the US to stand trial. But the indictment is a sharp escalation of the Trump administration's efforts to pressure the Cuban government into economic and political concessions. Two police officers who defended the Capitol during The attack on January 6, 2021, filed a lawsuit today seeking to stop the Trump administration's, quote, anti weaponization fund, which we told you about earlier this week. The fund has drawn skepticism and criticism from both sides of the aisle. The acting Attorney general, Todd Blanche, defended it in front of Congress yesterday. And speaking of Congress, Senate Republicans today said that they don't have the votes to preserve a billion dollars in funding tied to President Trump's ballroom project. The president has made clear he can make or break the career of any Republican in Congress. And in doing so, he's created a class of lawmakers who lost their primaries but are still in office. Republicans have begun referring to those outgoing senators as a, quote, YOLO caucus because they have little to lose in going against Trump. And the House of Representatives has passed a new version of a major housing bill. It's a Big win for the real estate industry. The bill, which was approved 396 to 13, includes restrictions on institutional investors buying single family homes. But it doesn't include a requirement that housing developers hated forcing a sale of newly constructed rental homes within seven years of completing them. That provision was in the Senate version of the bill. The legislation now moves back to the Senate for final approval. In retail today, Target reported strong quarterly sales, the first sign that its turnaround efforts are starting to take hold. Comparable sales are a key retail metric. They cover online sales and stores that have been open for at least a year at and Those sales rose 5.6%. It's the biggest quarterly increase since early 2022. For more on what's driving the growth, I'm joined now by Sarah Nassauer, who covers large retailers for the Journal. Sarah, this is the first quarter we're seeing results since Michael Fidelke took over as Target's CEO in February. He promised big changes to the company's operations to help turn it around. What do the earnings show about whether his plan is working?

[Sarah Nassauer]

When Fidelke took over, he was very clear that really the number one thing they need to be doing is getting back to style and design and uniqueness in their product assortment, that they need to make sure that what they sell is differentiated from what you can get elsewhere. They've done some things in baby and their toy department that they feel like shoppers are responding to them in a positive way. They're also investing in supply chain and improving customer service. But they also did really poorly last year in the same period. Right. And so they're comparing it to a quarter where, you know, it's like an easy compare is what what we say.

[Alex Osila]

And the stock slid today, ending down about 4%. Why did investors react so negatively on the call?

[Sarah Nassauer]

You know, the executives were emphasizing also just some macroeconomic uncertainty and that they want to be cautious. Also, the changes that Target is making are expensive. So I think investors are dealing with a really uncertain environment. And what Target was saying sort of spoke to some of that.

[Alex Osila]

That was WSJ reporter Sarah Nassauer. Thanks, Sarah.

[Sarah Nassauer]

Thanks for having me.

[Alex Osila]

Longtime Congressman Barney Frank has died at the age of 86. The Massachusetts Democrat was a force in the Capitol for 32 years. He helped reshape the US financial system after the 2008 financial crisis. The 2010 Dodd Frank Law that bears his name was Democrats attempt to prevent another crisis. But Republicans and banking executives argued that the law stifled innovation. And in the years since, Congress and later administrations have narrowed the law's reach. Frank was also known for much of his career as the country's most prominent openly gay politician. And finally, we go to Harvard, where the era of the A grade may be nearing an end. Today, Harvard's faculty voted to cap the number of A's per course to 20%. The change is part of the college's years long effort to curb grade inflation. In Harvard's last academic year, about 60% of grades were A's. The change comes even after strong backlash from Harvard students. However, the cap doesn't apply to A minuses, which are expected to take over as the most awarded grade. And that's what's news for this Wednesday afternoon. Today's show is produced by Danny Lewis and Alexis Moore with supervising producer Talia Arbel. ALEX I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening. Hey, this is Telus Demos and I'm Miriam Gottfried. We're reporters at the Wall Street Journal and The hosts of WSJ's take on the Week. It's a weekly show that gives listeners a leg up in the world of markets and investing.

[IBM Narrator]

From the Fed's moves to market bubbles, we dive into the big key players and business news ahead. If you're looking for more news and tools that you can use to help navigate the markets, consider becoming a subscriber to the Wall street journal.

[Alex Osila]

Visit subscribe.WSJ.com Take on the Week to subscribe now.