OpenAI preparing imminent IPO filing eyeing September debut with GS, MS leading: reports
Make us a preferred source
Make us a preferred source on Google
The news: OpenAI is preparing to file for a draft IPO prospectus as early as Friday US time, targeting a public debut as soon as September, The Financial Times reported citing unnamed sources.
The Wall Street Journal separately reported the same details, also citing unnamed sources. Bloomberg confirmed the filing plans, reporting OpenAI is preparing to file in the coming weeks, a slightly more cautious timeline than the FT and WSJ suggest.
According to the reports, the ChatGPT creator is working on a confidential IPO filing and has engaged lawyers at Cooley. Goldman Sachs and Morgan Stanley are reportedly leading the raising.
The company is aiming for a valuation of more than USD1 trillion, the FT added, compared to the most recent funding round in April which valued it at USD852 billion.
The context: The reports come just days after a jury dismissed Elon Musk’s lawsuit against OpenAI and Altman, in which he had alleged the company betrayed its charitable mission by converting to a for-profit structure.
The verdict eliminated a key overhang to the company’s IPO plans. Musk has said he plans to appeal the veredict.
What they said: “We regularly evaluate a range of strategic options. Our focus remains on execution,” OpenAI said in a statement.
According to the report, CEO Sam Altman has been pushing for the company to list ahead of its main rival Anthropic, which is also preparing to go public as soon as this year. But Chief financial officer Sarah Friar has reportedly urged a more cautious approach.
The timing could shift depending on market conditions and on the performance of Elon Musk’s SpaceX, which is reportedly targeting a listing next month at a valuation of USD1.75 trillion.
There is “a lot of gamesmanship” going on between the companies, one of the sources told the FT.
The sources: The Financial Times, The Wall Street Journal, Bloomberg
