Just days after Elon Musk lost his lawsuit against OpenAI, the ChatGPT maker is barreling toward a September IPO, putting Sam Altman and Musk on a collision course in public markets. OpenAI could confidentially file paperwork with the Securities and Exchange Commission as soon as Friday, according to the Wall Street Journal.
The company has been working with Goldman Sachs and Morgan Stanley on a draft prospectus, with September floated as a potential debut window. The timing is no coincidence. Musk's SpaceX, which absorbed his AI venture xAI in February, unveiled its own IPO paperwork Wednesday, setting up a rare double feature: two of the most valuable private companies in the world heading to public markets within months of each other.
OpenAI's last private valuation hit $852 billion after a $122 billion funding round in March. SpaceX is targeting between $1.75 trillion and $2 trillion in its IPO valuation, which would shatter Saudi Aramco's $29 billion record from 2019. The legal drama cleared a major hurdle. A federal jury in Oakland tossed Musk's lawsuit against Altman, cofounder Greg Brockman, and OpenAI on Monday, ruling Musk had waived his right to file the claims. Musk says he plans to appeal. But the numbers behind OpenAI's public offering are complicated.
The company reported a $5 billion loss in 2024 on $3.7 billion in revenue. The Wall Street Journal reported in April that OpenAI is projecting multi-billion-dollar losses through 2029, including $85 billion in 2028. CEO Sam Altman has committed to spending $600 billion by 2030 on computing infrastructure. CFO Sarah Friar has privately told company leaders the firm may need more time before going public, per the Journal. She said OpenAI may need to raise more capital, just six weeks after closing that $122 billion round. OpenAI has 900 million weekly users and $25 billion in annualized revenue, but it's also projecting a $14 billion loss.
In the first three months of this year, the company spent $7.7 billion on AI capital expenditures, 77% of total spending. Meanwhile, Anthropic, another AI rival, reportedly agreed to a funding round valuing it at $900 billion, surpassing OpenAI's $852 billion valuation. Anthropic has also taken steps toward going public. OpenAI responded to the IPO reports with a statement: "As part of normal governance, we regularly evaluate a range of strategic options. Our focus remains on execution."
