OpenAI files paperwork for IPO, capping wave of 3 mega debuts

OpenAI, the company behind ChatGPT, announced Monday it had filed preliminary paperwork with the U.S. Securities and Exchange Commission (SEC) to explore an initial public offering (IPO). The San Francisco-based firm stated it expects the filing to become public and emphasized it has not yet decided on a timeline, citing advantages to remaining private for now. The filing caps a wave of IPO preparations among AI leaders, following Anthropic’s June 1 SEC submission and SpaceX’s own IPO roadshow. OpenAI CEO Sam Altman first suggested an IPO last fall, calling it the most likely path for the company, which is valued at $852 billion. The company, founded in 2015 as a nonprofit, restructured last year into a public benefit corporation while retaining nonprofit oversight. OpenAI’s move comes amid intense competition, with Google’s Gemini and Anthropic’s Claude gaining traction in AI markets. The company has yet to disclose revenue or profit timelines, operating at a loss due to high development costs. A recent legal victory against co-founder Elon Musk, who sued to block its for-profit shift, cleared another hurdle for its public ambitions. Chief Financial Officer Sarah Friar noted OpenAI is already adopting public-company practices, such as SEC-compliant revenue tracking. She called an IPO a ‘credentializing moment,’ citing access to larger capital pools and regulatory oversight. Friar also highlighted OpenAI’s valuation could rank it among the top 15 companies in the S&P 500 if it proceeds with the offering.