OpenAI IPO Talks Add Citigroup, JPMorgan to Bank Lineup

OpenAI has held discussions with Citigroup Inc. and JPMorgan Chase & Co. about joining the underwriting syndicate for its highly anticipated initial public offering, according to people familiar with the matter. The talks, reported by Bloomberg on 29 May 2026, indicate the AI firm is expanding its roster of bulge bracket advisors for a deal expected to rank among the largest technology listings in history. JPMorgan stock traded at $299.31 as of 04:12 UTC today, while Citigroup was at $125.90.

Context — [why this matters now]

The inclusion of additional major banks underscores the immense scale and complexity anticipated for the OpenAI public offering. A successful listing would mark the largest technology IPO since the debut of Saudi Aramco in 2019, which raised $29.4 billion. The current macroeconomic backdrop features stable equity markets and sustained institutional appetite for high-growth technology exposure, despite elevated interest rates. The catalyst for expanding the banking syndicate now lies in the need to distribute a massive share allocation across global investor bases and manage unprecedented deal size, which could exceed $100 billion in valuation.

Bank selection for landmark IPOs represents a fiercely competitive arena where mandates signal prestige and generate substantial fee income. The involvement of multiple bulge bracket firms mitigates concentration risk and leverages distinct distribution networks across different investor geographies and client types. This expansion phase typically occurs several months before a filing, suggesting advanced preparation for a 2026 or early 2027 public debut.

Data — [what the numbers show]

JPMorgan Chase shares traded at $299.31, up 0.01% on the session with a daily range between $295.23 and $299.60. Citigroup stock showed stronger momentum, rising 0.41% to $125.90 within a range of $123.52 to $126.84. The combined equity market capitalization of these two banking giants exceeds $1.2 trillion. Investment banking fee pools for major IPOs typically range between 1% and 3% of capital raised, suggesting a potential fee pool of $1-3 billion for a $100 billion offering.

Bank	Stock Price	Daily Change	Market Cap
JPMorgan Chase	$299.31	+0.01%	~$570B
Citigroup	$125.90	+0.41%	~$650B

This potential fee opportunity dwarfs the average investment banking revenue for these institutions. JPMorgan's corporate and investment bank segment generated $6.3 billion in revenue last quarter, while Citigroup's markets and investment banking unit posted $3.8 billion.

Analysis — [what it means for markets / sectors / tickers]

The expanded banking syndicate directly benefits pure-play investment banks with strong equity capital markets divisions. JPMorgan and Citigroup join previously rumored banks in positioning for substantial fee windfalls. The deal could provide a 3-5% uplift to annual investment banking revenue for each participating institution based on current analyst estimates. Secondary beneficiaries include market infrastructure providers like Nasdaq and the Options Clearing Corporation, which would handle increased trading volumes and derivatives activity post-listing.

The primary risk to this optimistic scenario involves regulatory scrutiny of artificial intelligence companies, which could delay or complicate the public offering process. Valuation sensitivity represents another concern, as market conditions in 2026 might not support the premium multiples OpenAI would command. Institutional flow data indicates concentrated accumulation in financial sector ETFs, particularly those weighted toward capital markets activity, suggesting smart money positioning for an investment banking revenue recovery.

Outlook — [what to watch next]

Key catalysts include the formal announcement of mandated banks, expected within the next two quarters. The SEC filing of an S-1 registration statement would provide the first official valuation range and detailed financial metrics. Market conditions will be scrutinized through the VIX index, currently trading near historic lows, and the technology sector performance within the Nasdaq-100 index.

Technical levels to monitor include JPMorgan's psychological resistance at $300 and Citigroup's 52-week high zone around $127. A breakout above these levels on increased volume would signal market confirmation of the IPO benefit thesis. The deal timing will likely depend on Federal Reserve policy decisions, with a stable or declining rate environment preferred for optimal pricing.

Frequently Asked Questions

What does the OpenAI IPO mean for retail investors?

Retail investors will likely gain access to OpenAI shares through traditional brokerage channels once the company completes its public listing. The IPO could generate significant market attention and trading volume, similar to other major technology debuts. Retail participation typically occurs after the initial institutional allocation period, often at market-determined prices rather than the IPO offer price.

How does OpenAI's potential valuation compare to other tech companies?

A $100 billion valuation would place OpenAI among the top 20 most valuable U.S. technology companies, surpassing established firms like Airbnb and Palantir Technologies. The valuation would represent approximately one-third of Meta Platforms' current market capitalization and would exceed the combined value of several legacy technology hardware manufacturers.

Which other banks might join the OpenAI IPO syndicate?

Goldman Sachs and Morgan Stanley traditionally co-lead major technology IPOs alongside JPMorgan Chase. International banks like Barclays and UBS frequently participate in large global offerings to distribute shares across European and Asian markets. Boutique advisory firms might secure roles given OpenAI's complex corporate structure and significant private market investment history.

Bottom Line

The expansion of OpenAI's banking syndicate signals preparation for a record-setting technology IPO that will reshape investment banking revenue projections.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.