ChatGPT maker OpenAI has confidentially filed for a US initial public offering, the company announced on Monday. The move follows rival Anthropic’s similar filing, as AI companies rush to capitalize on investor excitement around artificial intelligence.
OpenAI didn’t reveal the size or timeline for its IPO. “It may be a while because there are things we want to do that are likely easier as a private company,” the company said in a statement. However, sources suggest the AI giant is targeting a valuation of up to $1 trillion, with a potential market debut as early as September.
This marks a significant moment for the tech industry. Three companies with trillion-dollar valuations could go public in rapid succession, representing the biggest test of investor appetite for high-growth tech stocks in a decade.
A trio of trillion-dollar debuts
OpenAI isn’t alone in this race to public markets. Elon Musk’s SpaceX led the charge, filing for what could be the largest IPO in history with a $75 billion offering at a $1.75 trillion valuation.
Anthropic, the company behind the popular coding assistant Claude Code, filed for its IPO on June 1. This came weeks after the company raised $65 billion in funding at a $965 billion valuation.
“OpenAI is keeping options open as Anthropic edged ahead with its filing after a monster funding round,” said Michael Ashley Schulman, a partner at Cerity Partners.
The AI boom reaches Wall Street
These IPOs would mark the end of a transformative period for the tech industry. Artificial intelligence has quickly become the defining investment theme of the decade, with companies racing to develop and deploy AI technologies.
OpenAI’s recent fundraising highlights its rapid growth:
- Raised $110 billion at an $840 billion valuation from major backers including SoftBank, Amazon, and Nvidia
- ChatGPT has over 900 million weekly active users
- More than 50 million consumer subscribers
- Generating $2 billion in monthly revenue as of March
- Growing roughly four times faster than companies from the internet and mobile eras
The company’s revenue jumped dramatically from about $1 billion quarterly at the end of 2024. However, OpenAI told investors it doesn’t expect profitability until 2030.
Competition heats up
The AI industry OpenAI helped create has become increasingly crowded. Anthropic has emerged as a major challenger, with strong demand for its Claude AI among software developers. The company’s top-tier Mythos model is being used by firms to find code vulnerabilities.
This competition concerns some analysts about market capacity. “What OpenAI does not want is for the public market capital to exhaust itself,” said Gil Luria, managing director of D.A. Davidson. “Not only are SpaceX and Anthropic ahead of it in line to IPO, large public competitors could also raise tens of billions of dollars each in public market secondary issuances.”
Legal hurdles cleared
OpenAI’s path to public markets was complicated by its unusual structure. Founded as a nonprofit in 2015, the company created a for-profit arm in 2019 to fund AI development costs. This hybrid structure came under scrutiny when CEO Sam Altman was briefly ousted in late 2023.
The company faced additional challenges from Elon Musk, an early backer who sued OpenAI. Musk accused the company of straying from its original mission to benefit humanity. However, a US jury ruled against Musk in May, removing a major legal obstacle to the IPO.
In December 2024, OpenAI announced plans to restructure as a public benefit corporation, making it easier to raise capital while reducing nonprofit restrictions.
Market implications
These blockbuster offerings could energize the US IPO market. Global IPOs have raised $87.5 billion through May 26, reaching the highest level since 2021. However, bankers worry these massive deals might absorb capital that would otherwise go to smaller companies.
The success of these AI IPOs will likely determine investor appetite for tech stocks and could influence the broader market’s view of artificial intelligence investments.
