OpenAI files for IPO, eyes a trillion-dollar valuation

OpenAI has filed paperwork with the Securities and Exchange Commission to begin the process of going public, signaling another major test of investor enthusiasm for the AI industry. 

The ChatGPT maker said it recently submitted the documents, but has not decided when it will launch its initial public offering (IPO).

OpenAI could seek a valuation close to $1 trillion, up from about $852 billion during its last private funding round in March. A successful IPO would place the company among the world’s most valuable firms and provide billions of dollars to fund the development of advanced AI systems.

It would give investors a closer look at the company’s finances as it spends billions on AI infrastructure, chips, and data centers.

The move follows rival Anthropic’s confidential IPO filing earlier this month. It could set up a major AI IPO race alongside SpaceX, which owns Grok chatbot maker xAI.

While OpenAI helped ignite the AI boom with ChatGPT in 2022, competition has intensified as Anthropic gains ground with its Claude chatbot.

Under CEO Sam Altman, OpenAI is expanding its coding tools and business-focused AI services while seeking new capital to cover the high costs of building and operating AI models.