OpenAI Aims for $1 Trillion IPO Amid Tech Listing Rush

OpenAI is moving forward with plans to confidentially file for a U.S. initial public offering (IPO) within the coming weeks, according to multiple sources familiar with the matter. The company, valued at $852 billion, aims to go public as early as September and could see its valuation rise up to $1 trillion if successful.

The decision comes shortly after OpenAI successfully fended off a legal challenge from Elon Musk regarding its for-profit status. The company has been working closely with investment banks Goldman Sachs and Morgan Stanley on preparing the IPO prospectus, which it plans to file with regulators soon.

This move is part of a broader wave of anticipated blockbuster listings in the tech industry. SpaceX also filed for an IPO recently, targeting about $75 billion at a valuation of roughly $1.75 trillion. Both companies are timing their filings close together to allow portfolio managers to evaluate them simultaneously.

OpenAI has raised significant funding recently, including a $122 billion round earlier this year. However, it faces stiff competition from rivals like Anthropic, which is also preparing for an IPO and has seen rapid revenue growth in the enterprise AI market. Anthropic is closing in on its first quarterly operating profit, with sales expected to reach at least $10.9 billion in the June quarter.

The IPOs are expected to capture significant attention from retail investors due to their ambitious visions and high valuations. However, analysts caution that SpaceX's unique scale and valuation make it an atypical test case for the broader IPO market. The listing is expected to raise more than $75 billion, dwarfing every IPO on record.