Public markets brace for OpenAI and Anthropic IPOs
The ChatGPT maker has begun the process of going public as investors continue to pour money into artificial intelligence.
OpenAI has taken the first formal step towards a public listing, confidentially filing for an initial public offering with the U.S. Securities and Exchange Commission (SEC) and setting the stage for one of the largest tech IPOs in history.
The company, best known as the developer of ChatGPT, announced the filing on Monday but did not disclose the number of shares it plans to offer or a potential valuation.
“We have not decided on timing yet; it may be a while because there are things we want to do that are likely easier as a private company,” it said in the statement. “But it’s a complicated set of tradeoffs and this gives us the option to go public sooner if that ends up being best.”
The move comes as investors continue to pour capital into AI companies, viewing the technology as one of the most significant growth opportunities since the emergence of the internet.
Since launching ChatGPT in late 2022, OpenAI has become one of the most influential tech companies in the world, helping to bring AI into the mainstream and accelerating investment across the sector.
An IPO would mark a major milestone for the company and provide public market investors with direct exposure to the company that helped ignite the generative AI boom.
ChatGPT now serves around 900 million weekly users worldwide, generating $2 billion in monthly revenue according to research by marketing firm fatjoe.
The filing could also provide liquidity for existing shareholders, including employees, early investors, and strategic partners.
OpenAI was most recently valued $840 billion in private markets and is reportedly targeting a $1 trillion valuation. Investors will be closely watching whether public markets assign an even higher valuation once more detailed financial information becomes available.
The company’s planned listing comes amid an increasingly competitive race to dominate the AI industry.
Rivals including Anthropic, Google, Meta, and Elon Musk's xAI are investing heavily in AI models and infrastructure, while companies across the tech sector are racing to incorporate AI capabilities into their products and services.
Anthropic is also pursuing its own U.S. IPO, according to a June 1 announcement, just weeks after raising $65 billion in a funding round that valued the company at $965 billion.
At the same time, investors will need to weigh significant risks.
AI development requires enormous spending on data centers, chips, and computing power, while regulators around the world are increasing scrutiny of the technology.
OpenAI also faces ongoing legal challenges related to copyright, privacy, and the use of training data, all of which could affect future profitability and growth.
Indeed, Florida became the first U.S. state to suit OpenAI last week, alleging the company misled users about the risks associated with ChatGPT and seeking damages and a court order requiring changes to the company’s business practices.
For shareholders, the proposed IPO represents more than just another tech listing. It could become one of the first major tests of whether public investors are willing to support the lofty valuations being assigned to AI companies in private markets.
Going public also opens up these AI giants to a new threat; shareholder activist engagements. Activist investors have already begun running campaigns pushing boards on AI strategy, governance, disclosure, and capital allocation with notable targets including Snap Inc. and Tripadvisor.
If completed, OpenAI’s listing would mark a defining moment in the commercialization of AI, transforming one of the industry’s most closely watched private companies into a publicly traded benchmark for the future of AI.
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