OpenAI has confidentially filed for an initial public offering (IPO), taking an early step toward what could become one of the most closely watched market debuts in recent years.

The filing could also result in a major payout for early investors if the company proceeds with a public listing.

OpenAI said it has not decided when it will go public. Because the filing is confidential, the company has not disclosed how many shares it plans to sell or what price it may seek.

“It may be a while because there are things we want to do that are likely easier as a private company,” OpenAI said in a post on its newsroom page. The company added that the filing “gives us the option to go public sooner if that ends up being best.”

The filing comes shortly after OpenAI’s chief rival, Anthropic, announced plans to go public. It also comes ahead of SpaceX’s expected Friday debut.

The three listings could raise hundreds of billions of dollars, giving retail investors a chance to buy into some of the most closely followed private technology companies.

The offerings will also test whether public markets can support the high valuations attached to major AI companies.

A public listing would give Wall Street a clearer view of OpenAI’s finances at a time when the company is spending heavily on AI infrastructure and computing resources.

The filing also comes after investors sold technology stocks last week amid concerns that the recent rise in AI-linked shares had gone too far.

OpenAI was last valued at $852 billion after raising $122 billion in March. The company now faces pressure to show that it can generate enough cash to support that valuation.

OpenAI Chief Financial Officer Sarah Friar drew attention last November when she made comments suggesting the US government should “backstop” the company’s large spending on chips and data centers. She later walked back those remarks.

OpenAI has expanded the ways it makes money from ChatGPT, its main consumer product.

Over the past year, the company launched a cheaper $8 tier and introduced ads. The Information reported in April is that OpenAI expects the lower-priced plan to lift its subscriber count to 122 million this year.

The report also said OpenAI expects ads to become its largest revenue source by 2030.

OpenAI has also tried to show that its business is not limited to ChatGPT.

Over the past year, the company released a web browser, announced plans to develop consumer hardware products, introduced an AI agent that can code and manage apps on a user’s computer, and developed AI tools and programs for government, health, and finance customers.

These moves show how OpenAI is trying to expand its business before opening its financial results to public investors.

OpenAI recently won a legal victory after Elon Musk’s lawsuit against the company was barred by the statute of limitations.

The case could have disrupted OpenAI’s leadership ahead of a potential IPO if Musk had won. Musk’s attorney has said he plans to appeal.

Still, OpenAI faces several challenges as it moves toward public markets. The company is competing with Anthropic and Google, facing lawsuits alleging ChatGPT played a role in shootings and suicides, and dealing with wider consumer criticism of AI.

OpenAI also faced internal turmoil in 2023, when Sam Altman was briefly removed as chief executive before returning to the role.

Anthropic’s valuation recently moved past OpenAI’s after a May fundraising round valued the company at $965 billion.

The two companies are competing for both consumers and business customers as spending on AI tools continues to rise.

That rivalry is now moving from product development into public markets, where investors will compare their growth, costs, risks, and long-term business models.

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