ChatGPT maker and artificial intelligence (AI) space leader OpenAI is considering pushing back its much-hyped initial public offering (IPO) to next year, according to a New York Times report citing sources.
A spokesperson for declined to answer queries, the NYT report added.
OpenAI may delay its listing to 2027 due to concerns over volatility in technology stocks — concerns emerged following performance of Elon Musk-led ‘s shares, it added. The stock shot up immediately after listing pushing the world’s richest man to trillionaire status, before the stock plummeted, as per reports.
OpenAI CEO is reportedly pushing bankers and lawyers to target a valuation of $1 trillion, the report added. It noted that there are now concerns that the sentiment from retail investors is now dampened. The Wall Street Journal reported that OpenAI is trying to catch up with its younger rival in the race to win enterprise customers that are paying large amounts of money for AI tools that can improve workplace productivity.
Bloomberg reported that the AI maker is in talks with Morgan Stanley and Goldman Sachs for the potential listing as soon as fall this year. Notably, the WSJ story added that the AI company said in a confidential filing statement that there were “things we want to do that are likely easier as a private company,” but declined to elaborate further.
OpenAI, Anthropic going to list: What we know
As per a statement on 9 June, the company had confidentially filed for an IPO with the United States Securities and Exchange Commission (US SEC), the Bloomberg report added. Prior to this, rival AI company said that it filed a confidential S-1 submission on 1 June.
The close on heels filings by two of the world’s biggest AI labs has created buzz over which rival will reach the public first, even as each insists the other’s timing has no bearing on its own plans. After their most recent funding rounds, OpenAI is valued at $852 billion and Anthropic at $965 billion — making them among the most valuable private firms globally.
OpenAI’s chief financial officer Sarah Friar in April told CNBC it is “good hygiene” for a company of its size to “look and feel and act” like a public company. She had not specified a date of listing.
Notably, CEO Aravind Srinivas also told CNBC on 9 June that the AI player is aiming to finalise its own IPO in 2028 regardless of how rivals Anthropic and OpenAI fare with their listings. “I think it’s important for the AI industry that these IPOs go well, and I actually think they will go well, because they’re doing well,” Srinivas stated, however adding that the AI company is “planning something in 2028” and this is “agnostic” of how Anthropic or OpenAI’s listings perform
Perplexity’s Chief Business Officer Dmitry Shevelenko also told Reuters, “By consistently holding 2028 as our earliest date for an IPO, Perplexity has been able to build a healthy, high-growth business.”
(With inputs from Bloomberg, Agencies)
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