‘We Expect It to Leak, So We’re Just Announcing It’: OpenAI Files Confidentially for IPO

OpenAI has officially filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC), marking its transition from a private entity to a publicly traded company. In a statement, OpenAI acknowledged the likelihood of the filing leaking, noting that no final decision on timing has been made. The company emphasized that it may remain private longer to pursue goals easier achieved as a private entity, though it retains the option to go public sooner if advantageous. The filing remains confidential, meaning financial details and profitability insights will not be publicly available until the SEC releases them. This approach allows OpenAI to refine its regulatory strategy before facing public scrutiny, a critical consideration given the company’s high-profile status and recent controversies. OpenAI is currently valued at $852 billion, with reports suggesting executives aim for a stock market valuation of up to $1 trillion. Founded in 2015 as a nonprofit, OpenAI completed its recapitalization in late 2025 to become a for-profit public benefit corporation. The company revolutionized the AI industry with the launch of ChatGPT in 2022, though its dominance has faced challenges from competitors like Anthropic and Google. OpenAI declared an internal ‘code red’ in December 2025 after Anthropic introduced Claude Cowork in February and Mythos in April, intensifying market competition. Legal hurdles remain, as a jury recently ruled in favor of OpenAI in a lawsuit filed by co-founder Elon Musk, who sought to reverse the company’s for-profit conversion and remove CEO Sam Altman. Despite cost-cutting measures—including ads in ChatGPT and the shutdown of the video generator Sora—OpenAI’s path to profitability remains uncertain. The Wall Street Journal reported slowed ChatGPT growth in late 2025, with missed revenue and user targets, while CFO Sarah Friar reportedly expressed doubts about the company’s readiness for an IPO this year. Internal divisions over the IPO timeline have also surfaced, with Friar allegedly opposing Altman’s push for a faster public listing. OpenAI’s filing comes as the third major AI-related IPO anticipated by markets, following recent moves by competitors in the rapidly evolving sector.