OpenAI, the company behind ChatGPT, has reportedly been exploring the possibility of filing for an initial public offering (IPO) over the past year. However, the latest report suggests that the AI company’s IPO filing could happen as early as this week.
According to a CNBC report, OpenAI is preparing to “confidentially” file for an initial public offering as soon as Friday, which could mark one of the biggest IPO filings in history. The AI company is reportedly in talks with some of the largest banks in the United States, including Goldman Sachs and Morgan Stanley, to file a draft IPO in the coming days or weeks.
OpenAI is valued at up to $852 billion by investors, and filing for an IPO could help the company join the growing list of tech firms with trillion-dollar valuations. OpenAI CFO Sarah Friar told CNBC last month that it is “good hygiene” for a company of OpenAI’s size to “look and feel and act ... like a public company.” Friar also said that OpenAI does not want to rely on raising equity for an extended period.
The ChatGPT maker has remained tight-lipped about its IPO plans. An OpenAI representative only said in a statement, “As part of normal governance, we regularly evaluate a range of strategic options. Our focus remains on execution.”
OpenAI’s push for an IPO comes just days after the company appeared to gain an advantage over Elon Musk in court, removing one of the biggest potential hurdles to its IPO plans. Earlier this week, after months of legal battles, a federal court in California rejected Elon Musk’s $150 billion lawsuit against OpenAI’s efforts to become a for-profit organization.
Musk said he would appeal the ruling while claiming that OpenAI CEO Sam Altman and OpenAI President Greg Brockman were using the company to increase their personal wealth.
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