In a statement released on Monday, OpenAI said that it has filed IPO papers with the Securities and Exchange Commission (US SEC), and is working with Goldman Sachs and Morgan Stanley on a potential listing as soon as in the fall, as per a Bloomberg report.
The company also stated that it has not decided on a set time yet to go public as they may want to do things that are easier to execute as a private company but will choose the option to go public sooner if that is the best alternative available.
Bloomberg’s report also states that the company is planning on launching a tender sale of shares to provide liquidity to employees in the coming weeks before heading to the IPO route.
OpenAI currently faces competition from Anthropic, which has also filed papers for its IPO, and Google’s Gemini. Founded more than a decade ago, OpenAI launched the generative AI boom with the release of ChatGPT in 2022.
Earlier reports indicated that the company had missed its own internal revenue and user growth targets, which had triggered a brief sell-off on Wall Street. Additionally, several key executives have quit and the company is also grappling with streamlining its slate of product offerings.
OpenAI recently dwarfed the SpaceX IPO in a single funding round. The company raised $122 billion from investors recently, albeit at a lower valuation of $852 billion, compared to the SpaceX IPO valuation figure of $1.8 trillion.
AI-linked companies are already raising billions to fund their ambitious growth plans. Google-parent Alphabet recently announced a $85 billion equity offering, while the Financial Times reported of a similar plan from Meta. The company had told investors in February that it plans to spend around $600 billion on AI infrastructure by 2030.
(With Inputs From Agencies)
