OpenAI, the maker of ChatGPT, is taking steps towards becoming a publicly traded company. The San Francisco-based firm has submitted confidential documents to the U.S. Securities and Exchange Commission. “We expect it to leak, so we’re just announcing it,” the company stated. OpenAI has not finalized the timing for going public and acknowledged complexities in the decision, stating, “It may be a while because there are things we want to do that are likely easier as a private company.”
This move puts OpenAI in line with other AI companies like Anthropic, which plans to go public, and SpaceX, which is promoting its AI-focused business to investors. OpenAI CEO Sam Altman mentioned last fall that an IPO could be the most suitable path for the firm due to its significant size and the capital needed to advance its technology. Founded in 2015, OpenAI now has a valuation of $852 billion.
Industry analyst Nate Elliott remarked, “OpenAI’s filing occurs as the company seems to be losing its early lead in the AI sector to rivals like Google and Anthropic.” Elliott added, “OpenAI needs substantial capital to sustain its operations.” The company restructured last year into a public benefit corporation, technically remaining under nonprofit control. Additionally, OpenAI settled a lawsuit from co-founder Elon Musk, who attempted to remove Altman from leadership.
OpenAI, similar to Anthropic and SpaceX, currently expends more money than it earns, largely due to the high expenses in AI development. The company faces stiff competition from Anthropic, known for its chatbot Claude, and Google’s AI assistant Gemini. Although OpenAI has not disclosed its financial performance, CFO Sarah Friar emphasized, “We’re already acting with the good hygiene of a public company.” Friar noted OpenAI’s $852 billion valuation ranks it among the top 15 in the S&P 500.
In a recent statement, CEO Altman outlined OpenAI’s future goals. These include creating an automated AI researcher, spurring economic growth, and providing everyone with a personal AGI (artificial general intelligence). Altman noted OpenAI’s shift from AI research to product development and now aims to distribute AI benefits broadly across the economy.
Altman stated, “Everyone should have an opportunity for a meaningful share in the prosperity AI creates.” His recent meeting with Senator Bernie Sanders highlighted discussions about public ownership stakes in AI firms, reflecting growing public interest in sharing AI advancements.
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Associated Press Technology Writer Kaitlyn Huamani contributed to this report.