OpenAI Pursues Rapid Initial Public Offering, Insider Reveals
OpenAI Prepares to File for U.S. IPO as Early as September
May 20 - OpenAI, the maker of the popular ChatGPT, is planning to confidentially file for a U.S. initial public offering (IPO) in the coming weeks. This move comes as part of a wave of blockbuster listings anticipated in the year ahead.
According to a source familiar with the matter, OpenAI's plan is to go public as early as September. The company, which was last valued at $852 billion, is working with investment banks Goldman Sachs and Morgan Stanley on a draft IPO prospectus. This filing is expected to be made with regulators soon.
The timing of OpenAI's IPO filing is strategic, as it takes place just two days after the company fended off an existential court challenge from Elon Musk. This legal victory is seen as a major obstacle to an IPO, and it likely gave OpenAI the confidence to accelerate its timeline.
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The IPO is expected to value OpenAI at up to $1 trillion, with the aim to raise at least $60 billion in preliminary discussions. OpenAI's revolutionary use cases have unleashed an investor frenzy in names believed to emerge as key winners from wider adoption of the technology.
| Company | Revenue Growth Expectations |
|---|---|
| OpenAI | Moderate growth |
| Anthropic | Expected to surpass OpenAI |
OpenAI, led by Sam Altman, helped pioneer the widespread consumer adoption of generative AI models. The company raised $122 billion earlier this year, likely marking Silicon Valley's largest-ever funding round. However, in recent months, OpenAI has revised its product roadmap twice as it grapples with fierce competition from rivals, first Google and then Anthropic.
Anthropic, which has cemented its lead in the enterprise AI market, is expected by some industry watchers to surpass OpenAI's revenue growth in the months ahead. Despite this, OpenAI's ChatGPT serves more than 900 million weekly active users, and the company has surpassed 50 million consumer subscribers.
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Investor Takeaway
OpenAI is preparing to file for a U.S. initial public offering, which could happen as early as September.
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