source: techcrunch ai: openai files confidentially for ipo, following anthropic
level: business
openai filed confidentially for an ipo on monday, a week after anthropic did the same. the chatgpt maker submitted a draft registration to the sec but gave no details on timing or size. it said it posted a blog to get ahead of leaks, noting it may wait because some things are easier as a private company. openai also published a philosophical statement about its mission and agi, a move that might test sec rules during a quiet period under a hands-off trump administration.
the filing signals a blockbuster year for public markets, with spacex also expected to go public at a $1.75 trillion valuation. openai was last valued at $852 billion but faces financial strain. it missed user and revenue targets, and its cfo has raised concerns about massive data center costs. the company raised $122 billion in march but expects to spend that much on compute in 2028, burning $85 billion that year even after doubling sales. it may not generate positive cash flow for at least four years.
anthropic has painted a rosier picture, saying it is near its first quarterly profit, though its burn rate remains high after a $65 billion round and possible $36 billion in chip debt. secondary markets show anthropic's valuation surging past openai's, up 123% this year versus 11.3%. experts say the first to ipo may capture scarce capital, and anthropic's disclosures will set a valuation benchmark that could constrain openai. openai also faces governance questions from a 2022 board coup and lawsuits over user harm, but it recently won a case brought by elon musk.
why it matters: the ipo race between openai and anthropic will test public market appetite for ai companies with high costs and uncertain profits, influencing how investors value the sector.
source: techcrunch ai: openai files confidentially for ipo, following anthropic