OpenAI is preparing to confidentially file a draft IPO prospectus as early as Friday, as the company gears up for what could be one of the biggest public market debuts in history, CNBC confirmed Wednesday.
THE artificial intelligence The company, valued at more than $850 billion by private investors, works with banks including Goldman Sachs And Morgan Stanley prepare to file its case in the coming days or weeks, according to a source close to the case who asked to remain anonymous because the details are confidential.
“As part of normal governance, we regularly evaluate a range of strategic options,” an OpenAI representative said in a statement. “Our focus remains on execution.”
OpenAI is preparing for its IPO as early as the fourth quarter of this year, as CNBC previously reported. Sarah Friar, OpenAI’s chief financial officer, told CNBC last month that it was “good hygiene” for a company the size of OpenAI to “look, feel and act” like a public company, but it would not comment on a specific timeline.
Goldman Sachs and Morgan Stanley had no comment. THE Wall Street Journal was the first to report the confidential file.
Read more CNBC tech newsNews on OpenAI preparations comes as That of Elon Musk competitor SpaceX, which merged with xAI earlier this year, is expected to publicly disclose its IPO prospectus as early as Wednesday. Goldman Sachs will occupy the first position on the left on the SpaceX prospectus, followed by Morgan Stanleyand then Bank of America, Citi Group And JPMorgan Chasesources told CNBC.
SpaceX’s bid is expected to fetch a record sum after last being valued at $1.25 trillion in February. It was filed confidentially with the Securities and Exchange Commission last month.
OpenAI kicked off the AI boom with the launch of its chatbot ChatGPT in 2022, and has since become one of the most valuable private companies in the world.
The company has raised more than $180 billion from investors and continues to burn through cash at a historic pace. As CEO of OpenAI Sam Altman push toward an IPO, it is under pressure from investors to show that the numbers work, while facing increasingly tough competition from rivals, including Anthropic, which is winning in the AI enterprise and coding market.
Anthropic is currently in talks with investors to raise funds at a Valuation of $900 billionwhich would place it ahead of OpenAI. The company said in April that its annualized revenue exceeded $30 billion.
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