OpenAI Files Confidentially For IPO, Joining SpaceX and Anthropic In Capitalizing On AI Frenzy The rush by AI companies to go public before the window closes (i.e., "market conditions" emerge) entered its final lap late on Monday, when OpenAI joined its two mega peers in filing for a blockbuster IPO that could value the ChatGPT creator at more than $1tn as it races rival Anthropic to list its shar...
OpenAI Files Confidentially For IPO, Joining SpaceX and Anthropic In Capitalizing On AI Frenzy The rush by AI companies to go public before the window closes (i.e., "market conditions" emerge) entered its final lap late on Monday, when OpenAI joined its two mega peers in filing for a blockbuster IPO that could value the ChatGPT creator at more than $1tn as it races rival Anthropic to list its shares publicly, following an imminent offering by SpaceX. OpenAI said it had confidentially submitted a draft IPO prospectus to the US Securities and Exchange Commission, formally kicking off the process for one of the year’s most hotly anticipated debuts. The company is also planning to launch a tender sale of its shares to provide liquidity to employees in the coming weeks, before the company goes public, Bloomberg reported. Why employees would want to sell shares ahead of an IPO is not exactly clear, unless they fear the market reaction to the public offering would disappoint. OpenAI’s listing announcement comes days before SpaceX is set to IPO in a deal that could raise a record $86bn and value Elon Musk’s rockets-to-AI conglomerate at $1.78tn. Anthropic, the startup behind the chatbot Claude, said last week that it had filed confidentially for an IPO of its own. The company soared to a $965 billion valuation in its latest private funding round - above OpenAI’s for the first time - as its revenue surged. The three Wall Street listings comes at a time of unbridled euphoria among investors over AI, which has helped propel US stocks to a series of record highs but also prompted worries that markets are overheating. Last week, Goldman published a note seeking to preempt the big question: " Can Markets Absorb Massive Stock Supply From Coming Mega IPOs Without A Crash :" While Goldman did not express concerns about the coming flood of stock supply (its argument is that demand will more than offset the flood of new shares), the bank which is also a lead underwriter for both Space...