OpenAI officially joins Anthropic in the pursuit of an IPO

ChatGPT-maker OpenAI has formally initiated the process for an initial public offering (IPO) by submitting a confidential S-1 prospectus to the US Securities and Exchange Commission (SEC).

This move allows the AI major to begin the necessary regulatory reviews while keeping its financial details and internal strategies shielded from public and competitive scrutiny.

The development comes just one week after rival, Anthropic, submitted its own confidential S-1. Anthropic, currently valued at nearly $1 trillion, appears to be leading the race to the public markets.

Despite the submission, OpenAI has emphasised that a definitive date for the listing has not been established.

“We have not decided on timing yet; it may be a while because there are things we want to do that are likely easier as a private company. But it’s a complicated set of tradeoffs and this gives us the option to go public sooner if that ends up being best,” OpenAI said.

Reports of OpenAI’s IPO preparations first surfaced late last year, suggesting the firm is targeting a valuation of up to $1 trillion. To prepare for this transition, the company has restructured into a public benefit corporation.

This model is designed to balance the interests of shareholders with a commitment to a positive societal impact. Under the current ownership structure, the original nonprofit foundation retains a 26% stake, while Microsoft holds approximately 27%.

The financial landscape for these AI leaders is shifting rapidly. In April, the Sam Altman-led firm concluded a funding round of $122 billion, with a post-money valuation of $852 billion.

Shortly thereafter, Anthropic surpassed OpenAI in valuation for the first time, reaching $965 billion following a $65 billion Series H funding round. This aggressive competition for capital highlights the immense resources required to lead in the AI sector.

The use of confidential filings has become a preferred tactic for high-profile tech firms. By submitting an S-1 privately, companies like OpenAI, Anthropic, and SpaceX can resolve regulatory queries away from market speculators. Collectively, these three entities are driving what market analysts describe as a historic wave of mega-IPOs on the Wall Street.