OpenAI joins Anthropic in IPO push

OpenAI, the creator of ChatGPT, has taken a significant step toward public markets by confidentially filing for a U.S. initial public offering (IPO). This move places the artificial intelligence giant in line with its competitor Anthropic, which also recently filed for an IPO, signaling a growing trend of AI companies seeking to tap into public capital amid investor enthusiasm for the sector.

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Undoubtedly, OpenAI is keeping options open as Anthropic edged ahead with its filing after a monster funding round, yet both giants operate on timelines dictated by their own regulatory whirlwinds and internal builds rather than copycat moves.

While the filing indicates OpenAI's intention to go public, the company has not yet established a definitive timeline for the offering. Details regarding the size and terms of the IPO remain undisclosed. This cautious approach suggests OpenAI is carefully considering market conditions and its own internal readiness before committing to a specific launch date.

Industry analysts view OpenAI's potential listing as a pivotal moment for the artificial intelligence sector. Michael Ashley Schulman, a partner at Cerity Partners, suggests that an eventual OpenAI listing could solidify the narrative of AI as essential infrastructure. This, in turn, could attract substantial public investment into the field, further accelerating innovation and development.

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What OpenAI does not want is for the public market capital to exhaust itself.

However, the path to an IPO is complex, with several factors influencing the timing. Gil Luria, managing director at D.A. Davidson, notes that OpenAI is likely observing the IPO plans of other major tech firms like SpaceX and Anthropic. Furthermore, large public competitors could potentially raise significant capital through secondary issuances, influencing the competitive landscape. Josef Schuster, CEO of IPOX, highlights that while markets are currently receptive, they will be discerning in rewarding and potentially punishing companies based on their performance post-listing.

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SpaceX, OpenAI and Anthropic are now engulfing onto the public markets to finance their massive growth.

Jake Dollarhide, CEO of Longbow Asset Management, points out that investor interest in OpenAI and Anthropic might be more niche compared to a company like SpaceX, where Elon Musk's public persona is a significant factor. He anticipates that investors will be drawn to these AI companies based on their personal use and reliance on specific AI services, such as ChatGPT or Claude. Adam Sarhan, CEO of 50 Park Investments, believes OpenAI is likely waiting to gauge the market's reaction to other anticipated IPOs before making its own announcement.

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With SpaceX, everyone knows Elon Musk, everyone knows what they're getting or think they're getting. Anthropic and Open AI will have much more to do with what people are choosing to use personal entertainment or for work, as far as AI.