OpenAI plans to go public, intensifying investment race with Anthropic

Here is a story making headlines in the economy: OpenAI plans to go public, intensifying investment race with Anthropic6 minutes ago Share Save Add as preferred on GoogleKali HaysTechnology reporter , San FranciscoGetty ImagesOpenAI has revealed plans to sell shares to the public through a stock listing in the US. The artificial intelligence (AI) company behind the popular chatbot ChatGPT said on Monday that it had made a confidential filing with the US Securities and Exchange Commission to pursue an initial public offering (IPO) at some point in the future. "We have not decided on timing yet; it may be a while because there are things we want to do that are likely easier as a private company," the company said in a statement.

OpenAI's decision had been expected for months, but the company's filing comes exactly one week after rival AI firm Anthropic said it was planning to go public, too. Both OpenAI and Anthropic's plans to list on the stock market follow that of SpaceX, the Elon Musk company that owns Grok and is set to debut on the Nasdaq on Friday at what the company expects to be a price per share that will value the company at $1. But OpenAI and Anthropic, the maker of the chatbot Claude, are more focused on AI work and they have been fierce rivals essentially since Dario Amodei co-founded the latter company five years ago.

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He did so after leaving OpenAI over disagreements with Sam Altman, the co-founder and chief executive of OpenAI. Today, the companies compete for users, corporate customers, investors, and have in recent months been jockeying with private valuations inching toward $1tn. OpenAI's most recent valuation from private investors came in at $852bn.

Anthropic's most recent valuation hit $965bn. The companies now will be competing as to who might debut on the public stock market first - as neither have said exactly when this could occur. Just last week, Altman said in an interview with CNBC that he was in no rush to take OpenAI public, and that he would do it "when it makes sense".

In its statement on Monday, OpenAI said it was revealing its IPO plans because "we expect it to leak". The company noted that revealing its plans and its decision to go public "is a complicated set of tradeoffs". Having filed the necessary paperwork for review with the SEC, the company says it now has "the option to go public sooner if that ends up being best".

Financial markets are tracking the development closely as investors assess the likely impact.