OpenAI to file for an IPO in coming weeks

OpenAI is reportedly preparing to file an initial public offering (IPO) in the coming days or weeks. The report stated that the ChatGPT creator is working with investment banks Goldman Sachs and Morgan Stanley on a draft IPO prospectus, which could soon be filed confidentially with regulators, potentially as early as Friday.

OpenAI said in a statement, “We regularly evaluate a range of strategic options. Our focus remains on execution.”

OpenAI has been laying the foundation for a public listing as part of a broader strategy to raise fresh capital and support expansion in areas such as chips, data centres, and talent acquisition. Rivals Anthropic and SpaceX are also reportedly moving toward stock market debuts, with SpaceX’s IPO-related paperwork expected to become public as early as Wednesday.

OpenAI also recently overcame a significant legal hurdle tied to its IPO ambitions after a jury rejected a lawsuit filed by Elon Musk against the company and co-founder Sam Altman. Musk had argued that OpenAI had deviated from its original mission of serving the public good by evolving into a for-profit enterprise under Altman’s leadership. The jury dismissed the case, ruling that Musk had delayed filing the lawsuit for too long. 

Since launching ChatGPT, OpenAI has grown into one of the world’s most valuable AI companies. In April, the company completed a $122 billion fundraising deal at a valuation of $852 billion, marking its biggest funding round so far.

The AI firm has committed to spending more than $1.4 trillion on infrastructure in the coming years to support its AI ambitions. To finance those plans, OpenAI and Anthropic have attracted investments from venture funds and technology companies, including cloud and chip suppliers such as Amazon and Nvidia.