The decision by the creator of ChatGPT, last valued at $852 billion, comes shortly after overcoming a significant legal challenge from Elon Musk, potentially overshadowing the expected IPO filing from SpaceX later today.
“Addressing that legal issue cleared a significant hurdle for the IPO and likely boosted OpenAI’s confidence to speed up its timeline,” said Kat Liu, Vice President at IPOX.
OpenAI is targeting a public launch as soon as September and is collaborating with Goldman Sachs and Morgan Stanley to prepare a draft IPO prospectus for submission to regulators shortly, according to two insiders.
Read Also: Samsung Electronics’ shares jump after tentative wage deal suspends strike
Liu noted that timing its filing close to SpaceX’s IPO could alleviate some scrutiny from OpenAI, allowing the organization to share its narrative. “Simultaneous filings also compel portfolio managers to assess both companies concurrently.”
OpenAI has not yet responded to a request for comment from Reuters. The Wall Street Journal initially reported on the AI firm’s intentions earlier in the day.
The company, led by Sam Altman, is preparing for an offering that could potentially value it at up to $1 trillion, with early discussions aiming to raise at least $60 billion at the lower end, as reported by Reuters in October.
The revolutionary applications of AI have triggered a surge of interest among investors in firms viewed as key players in the expanding use of this technology.
OpenAI, which played a pivotal role in the mainstream adoption of generative AI models, secured $122 billion in funding earlier this year, likely marking the largest funding round in Silicon Valley history.
However, in recent months, it has made two revisions to its product roadmap amid intense competition from rivals, first from Google and then Anthropic.
Anthropic, which has solidified its position in the enterprise AI sector, is anticipated by some in the industry to exceed OpenAI’s revenue growth in the near future.
ChatGPT is reported to have more than 900 million weekly active users, with OpenAI stating earlier this year that it had crossed the 50 million mark in consumer subscribers.
