OpenAI Files for IPO, Targeting $1 Trillion Valuation

OpenAI has confidentially filed for a U.S. initial public offering, the company confirmed Monday, setting up a potential stock market debut that could value the ChatGPT maker at up to $1 trillion. The move comes weeks after rival Anthropic filed its own IPO paperwork, intensifying competition among AI giants for public market capital.

The company did not disclose offering size, terms, or a firm timeline. In a statement, OpenAI noted that "it may be a while because there are things we want to do that are likely easier as a private company." According to Reuters, which first reported the filing details, the IPO could occur as early as September.

Why it matters

A trillion-dollar OpenAI debut would represent one of the largest technology IPOs in history and test whether public markets can absorb multiple mega-offerings in rapid succession. With SpaceX pursuing a $1.75 trillion valuation and Anthropic targeting nearly $1 trillion, the trio of deals could define investor appetite for high-growth tech stocks for the next decade. The outcome will signal whether AI's extraordinary private market momentum can translate to sustainable public market valuations.

Crowded IPO pipeline raises capital concerns

OpenAI joins an increasingly crowded queue of AI companies seeking public listings. Elon Musk's SpaceX filed first, pursuing what would be the largest IPO in history with a $75 billion offering. Anthropic, maker of the Claude coding assistant, filed on June 1 after raising $65 billion at a $965 billion valuation.

Some investment bankers worry the concentration of massive offerings could exhaust available capital. "What OpenAI does not want is for the public market capital to exhaust itself," said Gil Luria, managing director at D.A. Davidson. He noted that established public competitors like Google could also raise tens of billions through secondary offerings, further straining investor capacity.

Legal hurdle cleared, corporate structure evolving

A May jury verdict rejecting Elon Musk's lawsuit against OpenAI removed a significant obstacle to the IPO. Musk had accused the company of abandoning its nonprofit mission for private profit. The unanimous ruling cleared what analysts called a major legal overhang.

OpenAI's path to public markets has required substantial corporate restructuring. Founded as a nonprofit in 2015, the company created a for-profit arm in 2019 to fund AI development costs. In December 2024, it announced plans to establish a public benefit corporation, a structure designed to facilitate capital raising while maintaining some mission-oriented governance.

Strong growth, distant profitability

The company earlier this year raised $110 billion at an $840 billion valuation from investors including SoftBank, Amazon, and Nvidia. At that time, OpenAI disclosed more than 900 million weekly active ChatGPT users and over 50 million paying subscribers.

Revenue growth has been explosive. OpenAI reported $2 billion in monthly revenue as of March, growing roughly four times faster than companies that defined earlier technology eras, including Alphabet and Meta. That compared to approximately $1 billion in quarterly revenue at the end of 2024.

Despite the growth trajectory, OpenAI told investors during its most recent fundraising that it does not expect profitability until 2030, according to a source familiar with the matter.

The IPO filing and valuation details were first reported by Reuters.