OpenAI is preparing to file a draft of its IPO prospectus as early as Friday, aiming for a public offering that could be one of the largest ever. The company, valued at over $850 billion by private investors, is collaborating with Goldman Sachs and Morgan Stanley for this process.
OpenAI's CFO, Sarah Friar, indicated that it is standard practice for a company of its size to operate as if it were public, although she did not provide a specific timeline for the IPO. This development coincides with SpaceX's plans to disclose its own IPO prospectus, which is expected to generate substantial capital following its recent valuation of $1.25 trillion.
OpenAI, which gained prominence with its ChatGPT launch in 2022, has raised over $180 billion but is currently facing financial pressures and competition from rivals like Anthropic, which is reportedly in talks to raise funds at a $900 billion valuation.
As OpenAI moves closer to its IPO, it must demonstrate financial viability to satisfy investor expectations while navigating a competitive landscape