OpenAI has quietly filed confidential paperwork for a US initial public offering, people familiar with the matter said. The artificial intelligence company's valuation in the filing falls between $730 billion and $850 billion — a range that would make it one of the largest technology listings in history.
Why the confidentiality
The SEC allows companies to submit draft registration statements privately, a practice common among high-profile startups and firms that want to test the market without immediate public scrutiny. OpenAI's decision to go the confidential route isn't unusual for a company of its scale. It buys time to fine-tune financial disclosures and respond to regulator questions before a public version lands.
Investors have been waiting for a clear signal on OpenAI's plans since the company's valuation soared past $300 billion in secondary market trades earlier this year. The confidential filing confirms that an IPO is in the works, though the exact timeline remains unclear. The company hasn't yet selected an exchange or set a date for the public filing.
The valuation gap
A pricing span of $120 billion leaves plenty of room for negotiation. At $850 billion, OpenAI would be worth more than most companies in the S&P 500. At the low end, $730 billion still dwarfs the current market caps of established tech firms such as Salesforce and Oracle. The final number will depend on investor demand, market conditions, and how the company presents its revenue growth and profitability outlook during the roadshow.
OpenAI generates income primarily through subscriptions to ChatGPT and API access for developers. Its revenue has grown rapidly, but so have costs — especially for the computing power needed to train and run large language models. The confidential filing likely contains updated financial statements that will give underwriters and early institutional investors a fuller picture.
What comes next
After the SEC completes its review, OpenAI will release a public version of the prospectus, revealing revenue, expenses, risk factors, and the use of proceeds. That document is expected later this year, though no firm date has been announced. The company will also need to name its lead underwriters, a decision that hasn't been disclosed.
The broader IPO market has seen a slow recovery from the downturn of 2022 and 2023, but the pipeline is starting to fill with big names. A successful OpenAI listing could reignite interest in tech IPOs and provide a benchmark for other AI companies considering going public. Whether the valuation holds up in a volatile market is an open question.
