OpenAI is preparing to file paperwork for an initial public offering in the coming days or weeks, a move that could set up one of the most closely watched public listings in Silicon Valley history, according to the Wall Street Journal.
The San Francisco artificial intelligence company has been working with bankers at Goldman Sachs and Morgan Stanley on a draft prospectus and could submit it to regulators as soon as Friday, the Journal reported, citing people familiar with the matter.
OpenAI’s goal is to be ready to go public as early as September, though the timing could still change, according to the report.
A filing would be a major step for OpenAI, whose ChatGPT product helped push generative AI into everyday life and made the company one of the most important names in technology. It would also test whether public investors are ready to buy into an AI company with huge growth expectations, rising competition and enormous costs.
OpenAI said in March that it had raised $122 billion in committed capital at an $852 billion post-money valuation.
But the Journal reported that OpenAI recently missed some internal revenue and user targets, a sign that even the best-known company in artificial intelligence may face a tough road as competition grows.
No public IPO registration statement for OpenAI appeared in federal securities filings as of Wednesday. Companies can submit draft IPO documents confidentially before making a public filing, so an early filing would not necessarily show up right away.
The Chronicle has reached out to OpenAI for comment on its IPO plan.
OpenAI also cleared a legal hurdle this week when a federal court in Oakland dismissed claims brought by Elon Musk against the company, CEO Sam Altman and other defendants.
Musk, a co-founder of OpenAI who later became one of its most prominent critics, had accused the company of abandoning its original nonprofit mission. The court found that Musk waited too long to sue. Musk has said he plans to appeal.
OpenAI now operates through OpenAI Foundation and OpenAI Group, a structure the company says is meant to help it raise capital while maintaining mission-focused governance.
Going public would force OpenAI to disclose far more about its business, including its revenue, losses, spending commitments, corporate governance and risk factors. Those details could be central to how investors judge the company’s value.
The company also faces a much more crowded AI market than it did when ChatGPT broke through in late 2022. Google and Anthropic have become stronger competitors, and Anthropic’s Claude has gained traction with businesses.