OpenAI Files Confidential IPO Plans, Says It May Remain Private for Some Time

U.S. Securities and Exchange Commission to pursue an initial public offering, BBC News reported. The company announced the filing on Monday, one week after rival Anthropic said it was planning to go public.

OpenAI stated it had not decided on timing. "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," the firm said. " OpenAI's most recent private valuation stood at $852bn.

Anthropic's most recent valuation reached $965bn. The company behind ChatGPT now competes with Anthropic to reach the public market first, though neither has set a date. 3tn).

The three companies face a "vast need for cash," Sunil Krishnan of Aviva Investors told the BBC's Today programme. OpenAI's compute costs exceed $100bn a year, while its revenue remains a fraction of that amount. Anthropic has told investors it expects to turn a profit in the first half of this year as sales of its Claude chatbot and related services have grown significantly.

SpaceX, which owns the AI chatbot Grok, is also not yet profitable. " Dario Amodei co-founded Anthropic five years ago after leaving OpenAI over disagreements with Altman. The two firms have competed for users, corporate customers, and investors since then.

Assistant professor Richard Crowley of Singapore Management University said investors are tracking the listings because performance will shape expectations for other AI companies. "We might typically think of OpenAI and Anthropic as competitors, but the fate of their financing is intrinsically intertwined through the public's perception of the generative AI space," he said.

" The filing requires the company to disclose more financial and product information if it proceeds with a listing.