OpenAI is Preparing to File For an IPO Very Soon
The artificial-intelligence giant is working with bankers at Goldman Sachs and Morgan Stanley
- OpenAI is preparing to file for an initial public offering soon, possibly as soon as Friday, according to people familiar with the matter.
- The artificial-intelligence giant recently won a legal fight with former backer Elon Musk, clearing a roadblock.
- Elon Musk’s rocket-maker SpaceX is expected to unveil its IPO paperwork Wednesday afternoon for a mid-June offering.
ChatGPT-maker OpenAI has been working with bankers to prepare to file for an initial public offering in the coming days or weeks, according to people familiar with the matter.
Bankers at firms including Goldman Sachs GS 4.39%increase; green up pointing triangle and Morgan Stanley MS 3.87%increase; green up pointing triangle have been helping the artificial-intelligence giant on a draft IPO prospectus it plans to file confidentially with regulators soon, possibly as early as Friday, some of the people said.
The goal is for the artificial intelligence giant led by Sam Altman to be ready to go public as early as September, some of the people said. The plans remain fluid and could still change, they cautioned.
The company cleared a major roadblock to its IPO earlier this week, when it won a legal fight with its co-founder turned Altman foe Elon Musk. Musk, whose rocket-maker SpaceX is expected to unveil IPO paperwork Wednesday ahead of a potential June offering, has said he plans to appeal the verdict.
OpenAI will have to overcome a host of other challenges, namely concerns about whether the company will be able to generate enough revenue to support its giant data-center spending commitments.
OpenAI’s lead in the AI race has recently come under threat from Anthropic, which has grown faster than its rival in recent months thanks to the fast adoption of its software tools across the workforce. OpenAI is in the middle of a major strategy pivot to try and catch up.