OpenAI Group PBC, the maker of ChatGPT, has confidentially filed for an initial public offering, marking the first step toward one of the most awaited stock market debuts in recent history. The artificial intelligence company, valued at approximately $852 billion, submitted its financial details to regulators for review, though it has not yet set a timeline for the listing. In a blog post, OpenAI said the IPO may still be months away, but filing now gives it the option to go public sooner if conditions favor.
The filing will bring OpenAI's closely guarded finances into public view, raising questions about its ability to turn global popularity into profit amid billions spent on AI infrastructure. The company also plans a tender offer for employees to sell shares at the current valuation, easing near-term liquidity pressure. OpenAI is reportedly working with banks including Morgan Stanley and Goldman Sachs.
The company reached its $852 billion valuation in March after a $122 billion funding round. It has expanded monetization, launching an $8 subscription tier and introducing ads, projected to become its biggest revenue source by decade's end. Beyond ChatGPT, OpenAI offers the coding bot Codex, an AI web browser, and plans consumer hardware and a "superapp" focused on autonomous AI agents.
OpenAI recently secured a courtroom victory over Elon Musk's xAI, which could have derailed its IPO plans. However, it faces stiff competition from Anthropic PBC and Google LLC, and lawsuits alleging ChatGPT's role in mass shootings and suicides. Anthropic's valuation recently surpassed OpenAI's at $965 billion after its own funding round, and both companies, along with SpaceX, have filed IPO paperwork, intensifying the race to go public.