OpenAI aiming for speedy IPO, source says - Reuters

<a href="https://news.google.com/rss/articles/CBMikAFBVV95cUxQMnZDYW4zd0pDVEQxVFRhNlozSDdMaTVma1FrQVhaZVZKd1lXTGtVdk9QUVVmN2pDbmc1SG8xVkRSTElVNThiZVlpV3dmLTZSVEdvaVhScGh3bm5oRk11WFZ6V05QbUk4a19ZcWlXRVVkeVUtRnZRYjFBQ0JUczRvNmJCam11YzN2U0NGeUlPUVA?oc=5" target="_blank">OpenAI aiming for speedy IPO, source says</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

OpenAI is preparing to confidentially file for a U.S. initial public offering in the coming weeks, aiming to go public as early as September, according to sources familiar with the matter. The company is working with Goldman Sachs and Morgan Stanley on the IPO prospectus. This move follows a recent legal victory over Elon Musk, who had filed a lawsuit against OpenAI alleging diversion from its nonprofit mission. The lawsuit was dismissed due to being filed too late under the statute of limitations.

OpenAI is preparing a confidential initial public offering (IPO) filing, according to sources close to the matter. This move, also reported by other media outlets, appears strategically timed to coincide with the upcoming IPO unveiling of Elon Musk’s SpaceX. Both OpenAI and SpaceX are engaging major financial institutions like Goldman Sachs, Morgan Stanley, and JPMorgan Chase to support their respective offerings. Industry speculation has long suggested that both OpenAI and its competitor Anthropic are targeting IPOs in 2026, likely between Labor Day and Thanksgiving. OpenAI recently prevailed in a legal challenge from Musk, who has expressed intentions to appeal. An OpenAI spokesperson emphasized that while the company is exploring various strategic options as part of its governance process, the primary focus remains on execution.

A day after Elon Musk lost his lawsuit that threatened OpenAI’s structure, leadership, and finances, the AI giant is ready to move forward with its initial public offering, sources told the Wall Street Journal. OpenAI chief executive Sam Altman reportedly hopes that his company will be ready to go public by September. The ChatGPT maker has been working with tech IPO powerhouse bankers Goldman Sachs and Morgan Stanley, and may file IPO paperwork confidentially with regulators within days or weeks, per the WSJ. The news of OpenAI’s potential IPO, which by all accounts should be a blockbuster, comes as the world awaits the public disclosure of SpaceX’s IPO filings, which are expected to appear as soon as Wednesday, according to reports. Rocket-maker SpaceX is, of course, now one of OpenAI’s major competitors, after it consumed Elon Musk’s model maker, xAI. Now that Musk failed to skewer OpenAI, the competitor he co-founded, through the heart with a lawsuit, it looks like the next Musk vs. Altman battle will take place in the world of finance. Which one will be the bigger IPO?

With 900 million weekly users, $25 billion in annualized revenue and a $14 billion projected loss, OpenAI is preparing to ask the public to buy in. The Wall Street Journal reported the company is working with Goldman Sachs and Morgan Stanley on a draft IPO prospectus. The company plans to file it confidentially with regulators as early as Friday (May 22) with a target public debut as early as September, according to people familiar with the matter. OpenAI was valued at $852 billion in its most recent funding round. CEO Sam Altman has pushed for a listing, but CFO Sarah Friar has privately told company leaders the firm may need more time, the Journal reported. The potential IPO comes as OpenAI faces growing competitive pressure.

OpenAI plans to file initial public offering paperwork with U.S. securities regulators as early as November 22, targeting a September listing, according to reports.