ChatGPT-maker OpenAI confidentially filed for a U.S. initial public offering on Monday, joining rival Anthropic in a push toward the stock market as investors seek exposure to the artificial intelligence boom. OpenAI did not disclose the size or terms of the offering, and said a timeline has not yet been determined. "It may be a while because there are things we want to do that are likely easier as a private company," it said in a statement. The move positions the AI giant for a highly anticipated stock market debut.
News agency Reuters had reported that the AI giant is targeting a valuation of up to $1 trillion in a stock market debut that could come as early as September. At that valuation, OpenAI would set the stage for a trio of trillion-dollar valuation companies debuting rapidly and is seen as the most consequential test of investor appetite across global markets for high-growth technology stocks and new-age firms in the recent decade. Elon Musk's SpaceX was the first off the block, filing for an IPO that would rank as the largest in history if completed, with the company pursuing a $75 billion offering at a $1.75 trillion valuation.
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IPOs of AI giants
On prediction markets, where traders wager on the outcome of future events, most participants had expected OpenAI to file for an IPO before Anthropic, according to Reuters. The IPOs from Anthropic and OpenAI would crystallize a transformative period for the technology industry and global markets, with AI rapidly emerging as the defining investment theme of the decade. OpenAI said earlier this year that it was raising $110 billion at an $840 billion valuation from a roster of heavyweight backers including SoftBank, Amazon, and Nvidia.
At the time, it also disclosed that ChatGPT had more than 900 million weekly active users and over 50 million consumer subscribers. The IPO filing follows OpenAI renegotiating its partnership with Microsoft, one of its earliest investors, that allowed the AI pioneer to forge new partnerships with firms such as Amazon.com and Alphabet's, Google unit. OpenAI was valued at $852 billion in March, putting it behind Anthropic by that measure heading into what analysts say could be a landmark period for AI listings.
The Windows maker's early investment, totaling $13 billion since 2019, helped pave the way for OpenAI's rapid rise and powered growth at the software major's Azure cloud-computing business. In March, OpenAI said it was generating $2 billion in monthly revenue and growing roughly four times faster than companies that defined the internet and mobile eras, including Alphabet and Meta. That compares with about $1 billion in quarterly revenue at the end of 2024.
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Open AI Vs Anthropic
Yet, the industry OpenAI launched has quickly become crowded, with competitors including Anthropic racing to challenge its dominance as investors scrutinize whether the AI industry's meteoric rise can be sustained. Anthropic has emerged as one of the biggest rivals, with its Claude AI seeing soaring demand from software developers to handle their computer programming and some firms deploying its top-shelf model Mythos to unearth vulnerabilities in their code.
The AI company behind the viral coding assistant Claude Code confidentially filed for a US initial public offering on Monday, weeks after raising $65 billion in a funding round that valued it at $965 billion. While the blockbuster offerings could inject fresh momentum into to the US IPO market, some bankers warn it may also soak up capital that might otherwise flow to smaller deals.
OpenAI was founded in 2015 as a research-focused nonprofit, but created a for-profit arm four years later to help fund the soaring costs of developing artificial intelligence systems. Its unusual structure, which gave the nonprofit control over the for-profit entity, came under intense scrutiny in late 2023 when CEO Sam Altman was briefly ousted before returning days later after employees revolted.
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