OpenAI, the maker of the ChatGPT chatbot, is preparing to file confidentially for an initial public offering in the coming weeks, two people with knowledge of the matter said, laying the groundwork for one of the largest artificial intelligence company offerings that would heighten the stakes of the technology race.
OpenAI is working with Goldman Sachs and Morgan Stanley to prepare the paperwork, said the people, who were not authorized to speak publicly about private discussions. OpenAI is closely watching the stock market, they added, and the timing of any filing remains in flux. If a filing comes soon, an I.P.O. could take place as soon as September.
“As part of normal governance, we regularly evaluate a range of strategic options,” a spokesman for OpenAI said in a statement. “Our focus remains on execution.”
OpenAI is one of the most highly anticipated potential public offering candidates this year, in what is set to be a lucrative string of tech company offerings. SpaceX, Elon Musk’s rocket and satellite company, which has valued itself at more than $1 trillion, is on the runway to reach the stock market as early as next month. And Anthropic, one of OpenAI’s fiercest A.I. rivals, which is raising money at a $900 billion valuation, has also taken steps to go public.
OpenAI, which is based in San Francisco, was valued at $730 billion in the private market after a funding round this year, not including the latest investment.
An I.P.O. boom would probably unleash a flood of generational wealth, creating the world’s first trillionaires and cementing the riches of a set of Silicon Valley tech executives who are already billionaires. It would also bring a bonanza to A.I. company employees, as well as to Wall Street banks and others.
The A.I. companies could reach the stock market even as the technology they built has generated an intense backlash. Communities around the world are pushing back against A.I. data centers being constructed in their backyards. In the United States, a growing national movement of parent groups, religious leaders, environmentalists and former Tea Party activists is also resisting A.I., a technology that many fear could harm their jobs, national security, the environment and people’s mental health.
OpenAI overcame a significant hurdle on Monday on the way to a possible I.P.O. when a federal judge and jury rejected a lawsuit from Mr. Musk that aimed to unravel the for-profit company that OpenAI created last year.
OpenAI, which is led by Sam Altman, its chief executive, started the A.I. boom in late 2022 with the release of ChatGPT. But it faces increasing competition from Anthropic and Google, which offer similar technologies.
After raising more than $180 billion over its lifetime, the company remains a long way from being profitable.
OpenAI pulled in more than $13 billion in revenue last year, but expects to spend $115 billion over the next four years. Revenue is rising from ads inside the consumer version of ChatGPT and as the company continues to sell its technologies to businesses and independent software developers.
ChatGPT has more than 900 million monthly users. But on Tuesday at its annual developer conference, Google said its Gemini app now had 900 million active users. The tech giant, which also runs a cloud computing business and makes its own A.I. chips, has mounted a significant challenge to ChatGPT through its search engine, where it now offers similar A.I. technology.
At the same time, OpenAI faces a challenge in the business market from Anthropic, which was founded by former OpenAI employees. Dario Amodei, the chief executive of Anthropic, recently said his company had planned to grow about 10 times as big this year, but had reached a growth rate that could make it 80 times as big this year. Much of that growth is from the company’s A.I.-based software coding product, Claude Code, which allows users to create complex programs without any coding experience.
Last month, Anthropic unveiled a new version of its technology, Mythos, and said the technology was too dangerous to be released publicly because it could be used to identify security vulnerabilities in the computer software that underpins the internet. It shared Mythos with a small group of tech companies and organizations.
OpenAI soon unveiled similar technology and took a different tack, sharing the technology with a much larger group and cybersecurity experts. It also upgraded its consumer chatbot with the technology.
Mr. Musk, Mr. Altman and a group of A.I. researchers founded OpenAI in 2015 as a nonprofit, vowing to build A.I. for the benefit of humanity. After a power struggle, Mr. Musk left the lab in 2018. Mr. Altman then attached the A.I. lab to a for-profit company and began raising billions of dollars from investors, including as Microsoft.
After the success of ChatGPT, Mr. Musk sued Mr. Altman and OpenAI in 2024, accusing them of abandoning the lab’s original mission by putting commercial gain over the public good. While Mr. Musk’s claims were rejected this week, he has said he would appeal the court’s decision.
