OpenAI is preparing a confidential application for an IPO. According to CNBC, the AI company may submit a preliminary draft of its prospectus to the U.S. Securities and Exchange Commission (SEC) as early as this week. This brings one of the most talked-about IPOs in the tech sector one step closer.
According to insiders, OpenAI is working with investment banks such as Goldman Sachs and Morgan Stanley on this. The formal filing could take place within a few days or weeks. OpenAI itself has not confirmed any specific timeline, but states that it “regularly evaluates strategic options” and remains focused on executing its plans for the time being.
The fact that OpenAI is considering a public listing comes as no surprise. CNBC previously reported that the company is aiming for an IPO in the second half of this year. Chief Financial Officer Sarah Friar recently said that it makes sense for an organization of this size to increasingly operate like a publicly traded company.
OpenAI is now among the highest-valued private technology companies in the world. Investors currently value the company at more than $850 billion. Since ChatGPT’s breakthrough in 2022, OpenAI has rapidly grown into a dominant player in generative AI.
At the same time, that growth requires massive investments. The company has raised hundreds of billions of dollars in funding and continues to invest heavily in infrastructure, AI models, and data center capacity.
Competition is intensifying
An IPO would give OpenAI additional financial clout at a time when competition in AI is intensifying. Anthropic, in particular, is gaining ground in the enterprise market and in AI-powered software development. According to CNBC, Anthropic is currently in talks with investors regarding a new funding round at a valuation of approximately $900 billion.
Elon Musk is also playing a prominent role in the AI landscape once again. His company xAI merged earlier this year with SpaceX, which is also preparing for an IPO. According to CNBC, SpaceX is also working with Goldman Sachs and Morgan Stanley on this.
“The IPO preparations follow closely on the heels of a legal victory over Elon Musk. A federal judge this week dismissed a $150 billion claim in which Musk sought to block OpenAI’s transformation into a for-profit company.
Pressure to demonstrate profitability
With a potential IPO, pressure is also mounting on OpenAI to convince investors of the financial sustainability of its strategy. Although revenue is rising rapidly, costs for AI training, chips, and energy consumption are also rising sharply.
The IPO would therefore not only be a major financial milestone for OpenAI itself, but also a test of investor confidence in the economic future of generative AI. According to CNBC, the IPO could become one of the largest tech IPOs ever.