OpenAI has initiated a confidential filing with U.S. regulators for an initial public offering, marking a significant step for the artificial intelligence sector as companies rush to public markets. The creator of ChatGPT has kept details of the offering size and terms under wraps.
Reports indicate the company could aim for a valuation as high as $1 trillion, which would position it among the largest IPO candidates in recent memory. The filing comes on the heels of substantial revenue growth and increasing demand for AI tools. OpenAI currently boasts over 900 million weekly active users on ChatGPT and generates approximately $2 billion in monthly revenue, figures that underscore its market dominance.
The move follows a period of rapid expansion for OpenAI, which earlier this year raised $110 billion at an $840 billion valuation from investors including SoftBank, Amazon, and Nvidia. The company has also disclosed that it has more than 50 million consumer subscribers for its premium ChatGPT offerings. Financial performance has accelerated, with quarterly revenue jumping from $1 billion at the end of 2024 to current levels.
OpenAI is not alone in its IPO ambitions. Anthropic, a rival known for its Claude AI products, filed confidentially for its own public offering just a day before. The company has attracted developer demand for its Claude Code tool and recently secured $65 billion in funding at a $965 billion valuation. Meanwhile, SpaceX, led by Elon Musk, is reportedly planning an IPO that could set records, with a potential $75 billion offering that would value the company at around $1.75 trillion.
The convergence of these large AI and tech IPOs is expected to impact the broader market. Bankers suggest that the sheer scale of these offerings could absorb capital that might otherwise flow to smaller listings, potentially reshaping the IPO calendar. However, the filings also signal strong investor appetite for high-growth technology stocks.
OpenAI’s journey to this point has been marked by strategic shifts and legal challenges. The company started as a nonprofit in 2015 and established a for-profit arm in 2019 to fund expensive AI development. A leadership crisis in 2023, when CEO Sam Altman was briefly ousted, was resolved after employee pushback. In December 2024, OpenAI proposed a public benefit corporation structure to address governance concerns. A lawsuit by Elon Musk, who accused the company of straying from its original mission, was dismissed by a U.S. jury in May, removing a potential obstacle before the IPO filing.
Microsoft, which has invested about $13 billion in OpenAI since 2019, has been a key partner, though the relationship has evolved as OpenAI has sought deals with Amazon and Google. The company continues to seek capital for advanced AI development, and its public listing is seen as a major milestone for the industry.