OpenAI Takes Major Step Toward Public Listing
OpenAI, the company behind the popular AI chatbot ChatGPT, has taken a significant step toward going public by submitting confidential preliminary paperwork to the US Securities and Exchange Commission (SEC). This move marks a key milestone in the company's journey as it considers an initial public offering (IPO).
The San Francisco-based artificial intelligence firm made the announcement on Monday, joining other major players in the AI industry who are exploring the possibility of an IPO. OpenAI's statement emphasized that while the timing of the listing is not yet finalized, the filing provides flexibility should the company decide to go public in the future.
"We expect it to leak so we're just announcing it," OpenAI said in a statement. "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. But it's a complicated set of tradeoffs, and this gives us the option to go public sooner if that ends up being best."
This development comes shortly after rival Anthropic announced its own plans for an IPO on 1 June. Both companies are now part of a growing trend in the AI sector, with Elon Musk's SpaceX also beginning an IPO roadshow and positioning itself as an AI-focused space company.
The Road to an IPO
OpenAI's CEO, Sam Altman, first mentioned the possibility of an IPO last year, calling it the company's "most likely path" given its scale and the need for substantial capital to develop advanced AI systems.
Founded in 2015 as a non-profit organization focused on developing AI for the public good, OpenAI has since evolved into a company valued at $852 billion (€730bn). The recent filing comes at a critical time, as the company faces increasing competition from firms like Google and Anthropic.
Nate Elliott, an eMarketer analyst, described the current moment as "precarious" for OpenAI, noting that the company requires significant capital to support its operations. "OpenAI doesn't have a lot of other places to look for the enormous capital required to support its costs," Elliott said.
A major step toward a public listing occurred last year when OpenAI restructured its business and converted into a public benefit corporation while maintaining control under its non-profit parent organization. This move was followed by the removal of a legal hurdle after OpenAI defeated Elon Musk in a federal jury trial. Musk had sought to remove Altman from leadership and reverse OpenAI's transition to a for-profit model. A judge dismissed the case after jurors found Musk had filed the lawsuit too late.
Why OpenAI Needs Fresh Capital
Despite its high valuation, OpenAI has not publicly disclosed its revenues or provided a timeline for profitability. Like other major AI firms, the company has been losing more money than it makes, as it continues to invest heavily in infrastructure and development while competing in a crowded market.
Its main competitors include Anthropic's Claude chatbot and Google's Gemini assistant. In April, OpenAI's chief financial officer, Sarah Friar, told The Associated Press that the company was already operating with the discipline expected of a listed company, including measuring revenue according to standards required for SEC reporting.
"I want us to be ready," Friar said. "I think it's good to be able to tap the public markets. They're much bigger than the private markets." She added that OpenAI's current valuation would place it among the 15 largest companies in the S&P 500 index.
"There is a credentialising moment of being a public company," Friar said. "At that point, people are checking your balance sheet, the SEC is governing you and so on."
Long-Term Ambitions
In a separate statement released on Monday, Altman outlined OpenAI's long-term goals, which include developing an automated AI researcher, accelerating economic growth, and providing "everyone on Earth a personal AGI" — artificial general intelligence capable of outperforming humans across many tasks.
Altman said OpenAI had progressed from pure research to commercial products and was now entering a third phase focused on the broad distribution of AI-driven benefits. "We're working to ensure the gains are widely shared," he said. "Everyone should have an opportunity for a meaningful share in the prosperity AI creates."
These comments came days after Altman met US Senator Bernie Sanders, who has proposed giving the public a 50% ownership stake in AI companies such as OpenAI. They also follow remarks by US President Donald Trump supporting the idea of giving the public a stake in the growth of the AI industry.
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