OpenAI has filed a confidential S-1 document with the U.S. Securities and Exchange Commission (SEC). With this move, the company behind ChatGPT is taking a formal step toward a public listing. A specific date has not yet been set, but an IPO with a valuation of up to $1 trillion is a possibility.
OpenAI announced the filing itself on Monday. The size and terms have not been disclosed. “It may be a while because there are things we want to do that are likely easier as a private company,” OpenAI said in an official statement.
Techzine previously reported on the first step toward an IPO, which involved collaboration with Goldman Sachs and Morgan Stanley.
Valuation of up to $1 trillion
Reuters reports that OpenAI is aiming for a valuation of up to $1 trillion in an IPO that could take place as early as September of this year. That would make it one of the largest tech IPOs ever. Earlier this year, the company raised $110 billion at a valuation of $840 billion, with investors including SoftBank, Amazon, and Nvidia. ChatGPT now has more than 900 million weekly active users and over 50 million paid subscribers.
OpenAI is growing rapidly financially, generating $2 billion in revenue each month. However, profitability is still a ways off. According to a Reuters source, OpenAI does not expect to be profitable until 2030.
OpenAI is not the only AI player heading for an IPO. Competitor Anthropic filed a confidential IPO application on June 1, weeks after raising $65 billion at a valuation of $965 billion. On prediction markets, the majority actually expected OpenAI to file before Anthropic. Elon Musk’s SpaceX is also preparing for an IPO, targeting a valuation of $1.75 trillion.