OpenAI is considering an initial public offering as soon as 2027, potentially following its rival Anthropic to the public markets. The ChatGPT maker's leadership expects Anthropic to go public first, possibly as early as October, despite both companies having already filed confidentially with the SEC. Recent volatility in tech stocks has influenced OpenAI's revised timeline, with deliberations ongoing and details subject to change. The company has not committed to a specific date, noting that remaining private may be advantageous for certain strategic initiatives.
Both OpenAI and Anthropic are racing to debut on Wall Street to attract public market investors and fund massive spending on AI chips and data centers. OpenAI is working with Goldman Sachs and Morgan Stanley on its potential listing, while Anthropic has seen revenue surge this year thanks to its AI coding tools. OpenAI raised $122 billion in a funding round earlier this year, valuing the company at $852 billion, to support its infrastructure spending. The revised IPO timeline caused shares of Goldman Sachs, Morgan Stanley, SoftBank, and Oracle to decline.
The delay signals that OpenAI is prioritizing strategic flexibility over a rushed public debut, even as the AI arms race intensifies. The company's cautious approach reflects the complex trade-offs between accessing public capital and maintaining operational freedom as a private entity. Anthropic's potential earlier listing could give it a first-mover advantage in the public markets, potentially reshaping investor perceptions of the AI sector. What to watch next: Whether Anthropic's IPO in October sets a valuation benchmark that pressures OpenAI to accelerate its own timeline, or if market volatility forces both companies to further delay.
Key Takeaways
- OpenAI plans to go public as soon as 2027, likely after Anthropic's expected IPO in October.
- Both AI firms are racing to public markets to fund heavy spending on chips and data centers.
- OpenAI's revised timeline caused stock declines for its bankers and major backers like SoftBank.
- The company remains cautious, citing advantages of staying private for certain strategic moves.
Insights & Analysis
- OpenAI's delay may be a strategic move to let Anthropic test public market appetite first, allowing OpenAI to adjust its valuation and narrative accordingly.
- The IPO timeline shift underscores the tension between AI companies' need for massive capital and their desire to avoid quarterly earnings pressure that could stifle long-term R&D.