OpenAI Prepares Confidential IPO Filing as Early as September
OpenAI is working with Goldman Sachs and Morgan Stanley to file a draft IPO prospectus confidentially in the coming weeks. The filing could value the company at up to $1 trillion and would follow the resolution of a legal challenge from Elon Musk.
New York PostOpenAI is preparing to confidentially file for an initial public offering, with a draft prospectus expected to be submitted to regulators possibly as early as Friday. The company is working with bankers at Goldman Sachs and Morgan Stanley on the filing documents. Two sources said OpenAI aims to list as soon as September in a transaction that could value the firm at up to $1 trillion.
OpenAI was last valued at $852 billion.
The company raised $122 billion earlier this year in what was described as Silicon Valley's largest-ever funding round. The planned IPO comes two days after OpenAI fended off a court challenge from Elon Musk. IPOX Vice President Kat Liu said resolving that legal matter removed a major obstacle and likely accelerated the timeline.
"Resolving that legal overhang removed a major obstacle to an IPO and likely gave OpenAI the confidence to accelerate its timeline," Liu said.
OpenAI did not immediately respond to a Reuters request for comment. The Wall Street Journal first reported the company's plans earlier in the day. Liu noted that filing close to an expected SpaceX IPO filing would allow OpenAI to tell its own story and force portfolio managers to evaluate both companies side by side.
ChatGPT serves more than 900 million weekly active users and has surpassed 50 million consumer subscribers, OpenAI said earlier this year. The company has revised its product roadmap twice in recent months amid competition from Google and Anthropic.
Anthropic is expected by some industry watchers to surpass OpenAI's revenue growth in the months ahead.
Key Facts
Story Timeline
4 events- Earlier this year
OpenAI raised $122 billion in funding round.
1 sourceNew York Post - Two days ago
OpenAI fended off court challenge from Elon Musk.
1 sourceNew York Post - Wednesday
Source told Reuters OpenAI preparing confidential IPO filing.
2 sourcesNew York Post · Financial Times - Today
Wall Street Journal first reported OpenAI IPO plans.
1 sourceNew York Post
Potential Impact
- 01
OpenAI could become one of the largest technology IPOs in recent years.
- 02
Portfolio managers may compare OpenAI and SpaceX investment cases directly.
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