OpenAI IPO plans advanced after the ChatGPT maker filed confidentially with the U.S. Securities and Exchange Commission to pursue a future stock market listing, the company said Monday.
According to the BBC report, the filing came one week after rival Anthropic said it also planned to go public. OpenAI said it had not decided on timing and may remain private while it completes work it said would be easier outside public markets.
SpaceX is also preparing for a Nasdaq debut on Friday, with a target share price that would value the company at USD 1.75 trillion.
OpenAI’s most recent private valuation reached USD 852 billion, while Anthropic’s latest valuation hit USD 965 billion, the report said.
Sunil Krishnan of Aviva Investors told BBC Radio 4’s Today programme that the companies have a vast need for cash and do not want to be last to list.
Read: ChatGPT Overhaul To Push OpenAI Toward Superapp
Richard Crowley, assistant professor at Singapore Management University, said public market performance by OpenAI and Anthropic could shape investor expectations for other generative AI firms. OpenAI’s annual compute costs are estimated at more than USD 100 billion.