OpenAI CEO Sam Altman hopes to complete the IPO before competitor Anthropic in order to attract market attention and funding.

Written by: Yang Chen

Source: Wall Street Journal

According to media reports, OpenAI is accelerating its IPO process, aiming to complete the IPO in September this year with a target valuation of over $1 trillion, which would become the largest public offering in the artificial intelligence industry to date.

OpenAI expects to submit the IPO draft prospectus as soon as this Friday. The company has been preparing for a public offering with a valuation exceeding $1 trillion over the past few months; it has partnered with Goldman Sachs, Morgan Stanley, and law firm Cooley.

Sam Altman advocates for completing the IPO before competitor Anthropic, to capture the attention and funding of public market investors.

At the same time, insiders indicate that OpenAI is submitting documents now, in part to send a clear signal to public market investors, hoping they reserve funds and not place all their "firepower" on the upcoming IPO of Elon Musk's SpaceX.

Timing of the IPO: Beat Anthropic, Divert SpaceX Funds

One of the core motivations driving OpenAI's accelerated IPO is competitive pressure from Anthropic. Anthropic is also preparing to go public as early as this year, and Sam Altman hopes OpenAI can land on the public market first.

Meanwhile, SpaceX is expected to go public next month, aiming for a valuation of $1.75 trillion to raise about $75 billion, which would likely become the largest IPO in history.

OpenAI is concerned that if investors allocate significant funds to SpaceX, it will compress its own fundraising space. Insiders say there is "significant game-playing" between the two companies, and OpenAI wants to secure market funds as soon as possible.

However, the final schedule for the IPO remains uncertain. It is reported that OpenAI's Chief Financial Officer Sarah Friar holds a more cautious stance regarding the pacing of the IPO.

Clearing Obstacles: Resolving Legal Issues with Musk

Over the past 12 months, OpenAI has focused on clearing potential obstacles before the IPO. The company completed its transition to a for-profit entity last year and has recently cut several high-cost "marginal businesses" to optimize its financial structure.

This week, OpenAI also won a legal dispute with Musk. Musk had previously sued OpenAI and Sam Altman on the grounds of "stealing from charities" to prevent its for-profit transformation, and this lawsuit has now concluded.

On the financing front, OpenAI has raised nearly $200 billion, an unprecedented scale. The company seeks to leverage the public market to further bolster funding to maintain a competitive edge in the AI field against rivals like Anthropic.

According to the Wall Street Journal, OpenAI plans to submit its IPO application as early as this week.