OpenAI could go public by September
What's the story
OpenAI, the company behind the popular ChatGPT chatbot, is gearing up for an initial public offering (IPO) in the coming weeks, according to The New York Times. The tech giant is working with Goldman Sachs and Morgan Stanley to prepare the necessary paperwork. However, the exact timing of any filing remains uncertain as it closely monitors market conditions. If filed soon, an IPO could happen by September this year.
Market anticipation
OpenAI's IPO amid tech company offerings
OpenAI's potential public offering has made it one of the most awaited candidates this year. The move comes as part of a string of lucrative tech company offerings. Notably, SpaceX, Elon Musk's rocket and satellite company, is also preparing for an IPO as early as next month. Anthropic, another AI competitor to OpenAI with a $900 billion valuation, has also taken steps toward going public.
Financial outlook
Potential trillionaires and wealth effects from IPO
OpenAI, a San Francisco-based company, was last valued at $852 billion in the private market after a funding round this year. The upcoming IPO could create unprecedented wealth, potentially birthing the world's first trillionaires and further enriching existing Silicon Valley tech executives. The move would also benefit AI company employees as well as Wall Street banks involved in the process.
Strategic move
Simultaneous filings and strategic considerations
OpenAI is looking to go public as early as September. The company is working with Goldman Sachs and Morgan Stanley on a draft IPO prospectus that it plans to file with regulators soon. The timing of its filing close to SpaceX's IPO could take some scrutiny off OpenAI and let the company tell its own story. "Simultaneous filings also force portfolio managers to evaluate both companies side by side," said Kat Liu, Vice President at IPOX.
IPO expectations
Previous reports on OpenAI's IPO plans
The Sam Altman-led company was previously reported to be preparing for an offering that could value it at up to $1 trillion. The goal was to raise at least $60 billion in preliminary discussions. OpenAI raised a whopping $122 billion earlier this year, possibly Silicon Valley's largest-ever funding round. Despite fierce competition from rivals like Google and Anthropic, the company continues to dominate with over 900 million weekly active users of ChatGPT.