OpenAI eyes confidential IPO filing as early as Friday

The AI company, valued at more than $850 billion by private investors, is reportedly working with Goldman Sachs and Morgan Stanley on the potential listing, according to a source familiar with the matter cited by CNBC.

By Navneet Singh

Artificial intelligence company OpenAI is preparing to confidentially file a draft prospectus for an initial public offering (IPO) as early as Friday, CNBC reported on Wednesday.

The filing could take place in the coming days or weeks, the report said.

OpenAI had raised $110 billion in a mega funding round on February 26, according to details shared by Sam Altman. The fundraising, backed largely by strategic investors, valued the company at nearly $730 billion.

The potential IPO filing comes days after a federal jury in Oakland rejected a lawsuit brought by Elon Musk against Sam Altman, Greg Brockman and OpenAI, a decision Musk has said he intends to appeal.

On May 18, An advisory jury found that Altman, OpenAI and its leadership were not liable on claims brought by Musk, a ruling later upheld by US District Judge Yvonne Gonzalez Rogers.

The lawsuit, filed by Musk in 2024, accused OpenAI of abandoning its original nonprofit mission and transforming itself into a profit-driven enterprise in violation of commitments made when the organisation was founded in 2015.

Musk, who co-founded OpenAI alongside Altman and others, left the company’s board in 2018.

The development also coincides with Elon Musk’s SpaceX preparing to publicly release its IPO prospectus as soon as Wednesday.

According to reports, SpaceX's initial public offering (IPO) aims to raise up to $75 billion and seeks a valuation of over $2 trillion. It would easily overtake Saudi Aramco's 2019 $29.4 billion IPO at that magnitude.