ChatGPT-maker OpenAI has taken a significant step towards going public by filing confidentially for an initial public offering (IPO). This move comes just over a week after its main rival, Anthropic, also filed to go public, intensifying the competition between the two AI firms.
According to a recent blog post from OpenAI, the company submitted a draft registration statement to the U.S. Securities and Exchange Commission for a proposed IPO. However, the number of shares and price have not been disclosed. This filing is seen as a strategic move by OpenAI to prepare for its public offering without publicly disclosing detailed financial information or business risks.
The confidential IPO filing is the latest signal that 2026 will be a blockbuster year for the public markets. With SpaceX expected to make its debut at a $1.75 trillion valuation, three of the most closely watched companies in tech could all go public within months of each other – a concentration of high-stakes offerings the markets haven’t seen in a generation.
OpenAI is racing to IPO even as it recently missed its own targets for new users and revenue, per The Wall Street Journal. Its chief financial officer, Sarah Friar, has reportedly raised concerns that OpenAI may not be able to support its massive data center spending. In late March, OpenAI secured $122 billion in the largest funding round in Silicon Valley history – $3 billion of which came directly from retail investors via bank channels.
However, the firm expects to spend roughly the same amount on computing power for AI research alone in 2028 and projects burning $85 billion that year even after doubling sales from the year prior. For context: OpenAI is asking public market investors to buy into a business that, by its own projections, won’t generate more cash than it spends for at least four more years.
The burn rate of both OpenAI and Anthropic has raised concerns about their financial sustainability. While Anthropic has provided investors with a rosier picture of its financials, saying it is close to achieving its first quarterly profit, its burn rate isn’t exactly modest. The company recently secured $65 billion in funding and may receive another $36 billion in chip-allocated debt.
Anthropic’s valuation has surged to $1 trillion on Forge Global, a retail secondary market platform, surpassing OpenAI, which was recorded at around $880 billion in April. David Shapiro, founder and CEO of OpenVC, noted that Anthropic’s rate of appreciation far exceeds OpenAI this year – 123% year-to-date versus OpenAI’s 11.3%. However, OpenAI isn’t seeing a lack of secondary interest.
The race to get to the public markets first is a real concern. Experts say whoever makes their debut first will likely nab more of what is becoming increasingly scarce capital for AI companies, much of which will have already gone to SpaceX. Additionally, Anthropic’s filing disclosures will set a valuation comp that constrains how OpenAI can price its own offering when it files.
OpenAI has built real scale, with around 900 million weekly active users. However, the company has been involved in several lawsuits, including one from the state of Florida accusing the company and CEO Sam Altman of harming children by providing information to school shooters, offering guidance on self-harm, and addicting young users.
The IPO comes after significant internal struggles within the company. In 2022, OpenAI’s board ousted Altman due to a lack of transparency from and trust in the CEO to stick to the firm’s mission of benefitting all humanity. Altman was quickly reinstated, and those who were involved in the coup departed shortly after.
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