ChatGPT creator OpenAI has confidentially filed for an Initial Public Offering (IPO) with the SEC, working with Goldman Sachs Group and Morgan Stanley. This move positions OpenAI as the third major artificial intelligence developer to confidentially file for a public listing, joining rivals in an IPO pipeline estimated to be worth approximately $3.6 trillion. OpenAI's most recent funding round in March valued the company at $852 billion.
Despite this filing, there is an ongoing internal debate within OpenAI regarding the IPO timeline. While CEO Sam Altman aims for a listing in Q4 2026, CFO Sarah Friar is reportedly pushing for a delay until 2027. Friar's concerns stem from the company's substantial spending commitments for data centers and computing capacity, totaling an estimated $600 billion. She worries that if revenue growth does not accelerate, these infrastructure costs could strain the company's finances, making it difficult to present a clean balance sheet to prospective public investors.
Friar also emphasizes the need for OpenAI to be adequately prepared for public-company reporting requirements, including three years of audited financials on a Sarbanes-Oxley basis and a robust internal-controls regime. She believes a 2027 listing would provide an additional year to close the gap between infrastructure commitments and revenue, satisfy reporting requirements, and address ongoing legal issues, such as a dispute with Elon Musk. Her perspective suggests that waiting could improve the company's long-term financial health and allow it to navigate the AI capital expenditure cycle more effectively.
The competitive landscape is another factor influencing the IPO timing. Anthropic, a rival AI company, has reportedly reached $30 billion in annualized revenue, surpassing OpenAI's $25 billion, and is seeking a valuation of $900 billion, which would exceed OpenAI's current valuation. The exclusivity of Microsoft's licensing agreement with OpenAI recently ended, potentially expanding OpenAI's market for enterprise contracts and improving its revenue picture. However, internal projections reportedly indicate a $14 billion loss for OpenAI in 2026, with profitability not expected until 2030, further complicating the IPO decision.
