OpenAI, the company behind ChatGPT, has confidentially filed for an initial public offering (IPO) in the United States, marking a major milestone in the fast-growing artificial intelligence industry.
The company announced on Monday that it had submitted confidential paperwork for a stock market listing. However, OpenAI did not reveal the size of the offering, its expected valuation, or when it plans to go public, Reuters reported.
The move comes at a time when investor interest in AI companies remains extremely strong, with several firms racing to secure a place on the stock market.
NO FIXED TIMELINE YET
While OpenAI has taken the first formal step towards an IPO, the company said a public listing may not happen immediately.
In a statement, OpenAI said there are still certain things it wants to accomplish as a private company and that remaining private offers greater flexibility for now.
The company did not provide a specific timetable for its market debut.
A POTENTIAL $1 TRILLION VALUATION
According to reports, OpenAI is aiming for a valuation of up to $1 trillion when it eventually lists on the stock market.
If achieved, it would make OpenAI one of the most valuable technology companies ever to go public.
Such a valuation would also place OpenAI among a new group of AI-driven businesses that are attracting enormous investor attention due to the rapid growth of artificial intelligence technologies.
AI FIRMS RUSH TOWARDS PUBLIC MARKETS
OpenAI is not the only AI company preparing for a stock market listing.
Earlier this month, rival company Anthropic, the maker of the popular coding assistant Claude Code, also confidentially filed for a US IPO. The company recently raised fresh funding that valued it at around $965 billion.
Meanwhile, Elon Musk’s space technology company SpaceX has also filed for an IPO and is reportedly targeting a valuation of $1.75 trillion.
Together, these listings are expected to become one of the biggest tests of investor appetite for high-growth technology companies in recent years.
MICROSOFT’S EARLY SUPPORT HELPED FUEL GROWTH
OpenAI’s rise has been closely linked to its partnership with Microsoft.
Since 2019, Microsoft has invested around $13 billion in OpenAI. Those investments helped the company develop its AI technologies and expand rapidly.
The partnership also boosted Microsoft’s Azure cloud business, which provides the computing power needed to train and run advanced AI models.
More recently, OpenAI renegotiated its relationship with Microsoft, giving it greater freedom to form partnerships with other major technology companies, including Amazon and Google.
PROFITABILITY STILL SOME YEARS AWAY
Despite its impressive revenue growth, OpenAI is still investing heavily in technology, infrastructure and research.
According to a source familiar with the matter, the company told investors during its latest fundraising round that it does not expect to become profitable until 2030.
For now, OpenAI appears focused on expanding its business, strengthening its position in the AI market and preparing for what could become one of the most closely watched stock market listings in recent history.
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