OpenAI is reportedly preparing to file for an initial public offering (IPO), with a public listing possible as soon as September.
The news comes shortly after Elon Musk’s SpaceX filed for an IPO, with plans to go public as soon as June this year.
The New York Times reported that OpenAI has been laying the groundwork for the filing through discussions with Goldman Sachs and Morgan Stanley, according to people familiar with the matter. Reuters also reported that OpenAI is preparing for a confidential US IPO filing in the coming weeks.
The report said OpenAI is closely watching the stock market before choosing the timing of its filing.
OpenAI did not confirm a specific IPO plan. A company spokesperson said OpenAI regularly evaluates strategic options as part of normal governance, while its main focus remains on execution, Engadget reported.
OpenAI is one of the biggest companies in the AI industry and was valued at $730 billion in its latest funding round, according to the provided report.
The company could enter a crowded IPO market for major AI-related firms. SpaceX, which now owns xAI, is also reportedly preparing a public offering that could happen as soon as next month. Anthropic has also taken steps toward going public.
The reported IPO preparations come shortly after OpenAI cleared a major legal hurdle.
A federal judge and jury rejected Elon Musk’s lawsuit this week, which could have threatened OpenAI’s for-profit structure. Musk had accused OpenAI and Chief Executive Sam Altman of breaching a nonprofit contract after Musk donated millions of dollars to the company.
The jury rejected the case, finding that Musk waited too long to file his 2024 lawsuit.
OpenAI is expected to attract major investor interest if it goes public, but its financial position remains under scrutiny.
The company reported a $5 billion loss in 2024 on $3.7 billion in revenue, according to the provided report.
Revenue has grown quickly since then, but costs have also increased. Altman has committed to spending $600 billion on computing infrastructure by 2030.
Some experts expect OpenAI to lose $44 billion by 2028. Supporters of the company believe it could become profitable in 2029 or 2030.
OpenAI’s valuation has also raised questions because it is tied partly to investments from major partners such as Nvidia and Microsoft.
Critics have argued that these relationships create concerns about circular investment, since OpenAI is one of Nvidia’s biggest customers and Microsoft was OpenAI’s exclusive cloud provider for years.
If OpenAI proceeds with an IPO, the listing could become one of the most closely watched public offerings in the AI industry.
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