OpenAI, the creator of ChatGPT, has confidentially submitted its paperwork for an initial public offering (IPO) in the United States, signaling its intention to join the stock market alongside competitors like Anthropic. The company has not revealed the size or specific terms of offering, nor has it established a timeline for IPO.
In statement released on Monday,OpenAI indicated that it might take some time before proceeding,citing ongoing projects that may be easier to manage as a private entity. The company is reportedly aiming for valuation of up to $1 trillion,a figure that could position it among a select group of companies achieving such valuations in rapid succession.
Earlier reports suggested that the IPO could occur as soon as September,potentially testing investor appetite for high-growth technology stocks,which have faced scrutiny in recent years . OpenAI's move follows that of SpaceX, which has filed for what could be the largest IPO in history,targeting a $75 billion offering at valuation of $1.75 trillion .
The anticipated IPOs from both OpenAI and Anthropic represent a significant moment for technology sector, as artificial intelligence emerges as a defining investment theme of the decade. OpenAI had previously announced plans to raise $110 billion at an $840 billion valuation,attracting investments from major players such as SoftBank,Amazon,and Nvidia.
As of earlier this year,OpenAI reported over 900 million weekly active users and more than 50 million consumer subscribers for ChatGPT. This growth has been bolstered by a renegotiated partnership with Microsoft,which has invested $13 billion since 2019, significantly contributing to the development of OpenAI's technologies and enhancing Microsoft's Azure cloud-computing services.
In March, OpenAI disclosed that it was generating $2 billion in monthly revenue, growing at a rate four times faster than tech giants like Alphabet and Meta. This rapid expansion contrasts sharply with projected $1 billion in quarterly revenue by the end of 2024.
Founded in 2015 as a nonprofit research organization,OpenAI transitioned to a for-profit model in 2019 to better fund its ambitious AI projects. This structure, which allows nonprofit to maintain control over the for-profit arm, has faced scrutiny, particularly following a brief leadership crisis in late 2023 that saw CEO Sam Altman ousted amid employee unrest.
In December 2024, OpenAI announced plans to transform into a public benefit corporation,a move intended to facilitate capital raising while reducing restrictions from its nonprofit parent. This decision sparked controversy,particularly from early investor Elon Musk, who has criticized the direction of the organization and even filed lawsuit against it. A US jury ruled in May that OpenAI was not liable for allegedly deviating from its original mission, a verdict that analysts believe alleviates a significant legal concern for potential investors.
