OpenAI files application for stock market listing as AI infrastructure costs skyrocket
OpenAI has filed a confidential application for an initial public offering with the US Securities and Exchange Commission (SEC). To facilitate this potential move to the public market, the organisation is working with Morgan Stanley and Goldman Sachs. Although a listing could take place this autumn, the company has clarified that no definitive timetable has yet been set. Management noted that, for its current objectives, it may in fact be more advantageous to remain private, although the application now provides the flexibility to go public if circumstances warrant it.
In addition to those preparations for the IPO, sources indicate that OpenAI plans to launch a public tender offer for its shares soon. This step is intended to provide employees with liquidity ahead of the official flotation.
Despite its role in unleashing the generative AI revolution at the end of 2022, the company is facing significant headwinds. OpenAI is struggling with fierce competition from Google and Anthropic, while at the same time grappling with internal problems, including the loss of top executives and the need to streamline its extensive product range.
There are also reports that the company has missed some of its own internal targets regarding user acquisition and revenue.
The broader AI sector is currently characterised by a fierce battle for capital to finance the enormous costs of data centres and specialised hardware. OpenAI has forecast infrastructure spending of around $600 billion (€520 billion) by the end of the decade.
That race for funding is clearly visible, as rivals such as Anthropic have also filed for an IPO and recently reached a private valuation of $965 billion (€835 billion) – surpassing that of OpenAI.
Moreover, an IPO would put Sam Altman in direct competition in the markets with Elon Musk. Musk’s company, SpaceX, is aiming for a stock market listing with an expected valuation of nearly $1.8 trillion. Even so, OpenAI has shown enormous fundraising power, previously securing $122 billion in a single round based on a valuation of $852 billion.
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