OpenAI is preparing to confidentially file paperwork for a potential initial public offering as early as Friday, according to a Wall Street Journal report citing people familiar with the matter, a move that would push the ChatGPT maker closer to one of the most closely watched stock market debuts in the technology sector.
The reported filing would mark a major milestone for OpenAI, which has rapidly expanded from a research-focused artificial intelligence company into one of Silicon Valley's most influential businesses. The company is said to be working with investment banks including Goldman Sachs and Morgan Stanley on draft IPO documents, according to the WSJ.
A confidential filing would allow OpenAI to privately engage with the US Securities and Exchange Commission before publicly releasing financial details and launching a formal investor roadshow. The timing of the filing could still change, the report said.
OpenAI did not immediately respond to requests for comment. Reuters, which also reported on the development, said it had not independently verified the WSJ's claims.
The potential IPO comes at a pivotal moment for OpenAI as competition intensifies across the artificial intelligence industry and investor demand for AI-related companies remains strong. Analysts have previously suggested OpenAI's valuation could eventually approach $1 trillion if growth continues at its current pace.
The company was originally founded in 2015 as a nonprofit research organization by a group that included Sam Altman and Elon Musk. Over time, OpenAI shifted toward a capped-profit structure and secured multibillion-dollar backing from Microsoft, helping finance the rapid expansion of products including ChatGPT.
The IPO preparations also follow a recent legal victory for OpenAI. Earlier this month, a California court dismissed a lawsuit brought by Musk, who accused OpenAI executives of abandoning the organization's original nonprofit mission for financial gain.
Judge Yvonne Gonzalez Rogers dismissed the case on procedural grounds, ruling that Musk's claims were filed outside the statute of limitations rather than addressing the substance of the allegations. Musk later wrote on X that the ruling was based on what he called a "calendar technicality" and confirmed plans to appeal.
OpenAI has rejected Musk's allegations and argued in court filings that he had previously supported restructuring efforts inside the company. Lawyers for OpenAI also suggested Musk's opposition was influenced by his involvement in rival AI venture xAI.
