OpenAI prepares for historic IPO in US

OpenAI, a pioneer and leader in generative artificial intelligence (AI) since the launch of ChatGPT, is preparing to file confidentially in the United States for an Initial Public Offering (IPO) in the coming weeks, sources told Reuters on condition of anonymity, adding to a wave of major listings expected this year.

SpaceX also announced plans on Wednesday to go public. The company, controlled by Elon Musk, the world’s richest man, is expected to launch a $1.75 trillion Initial Public Offering (IPO) this summer, potentially the largest in history, CE Report quotes AGERPRES.

OpenAI’s listing is expected to take place in September and the company is working with Goldman Sachs and Morgan Stanley, according to a draft IPO prospectus that will be submitted to regulators soon, the sources said.

OpenAI did not respond to Reuters requests for comment.

The company led by Sam Altman is preparing a listing that could value it at up to $1 trillion, Reuters recently reported, with the goal of raising at least $60 billion, according to preliminary discussions.

The American group OpenAI announced in February that it had raised $110 billion from three technology giants, although in recent weeks it has changed its development plans twice, following fierce competition from rivals Google and Anthropic. The American distribution group Amazon will invest $50 billion in the creator of ChatGPT, while the American chipmaker Nvidia and the Japanese technology investment group SoftBank will each invest $30 billion.

A major player in e-commerce and a leading provider of cloud computing services worldwide, Amazon will make an initial investment of $15 billion, followed by another $35 billion 'once certain conditions are met'.

OpenAI, the San Francisco-based company, boasts over 900 million weekly users of ChatGPT, making it by far the fastest-growing app ever. OpenAI plans to keep that momentum going and invest heavily in new computing power to develop new AI models and improve its existing product line.

The company’s current revenue, which is expected to reach $13 billion in 2025, is significantly lower than its expenses, meaning it will need to spend at least $218 billion by 2029 on chips, data centers, and talent to deploy its technology.

The Amazon deal allows OpenAI to diversify its partnerships, given that it has historically been tied to Microsoft. Since 2019, Microsoft has regularly invested in OpenAI, with the total value of investments exceeding $13 billion.

OpenAI expects its revenues to grow rapidly in the coming years, and to exceed $280 billion in 2030.

Photo: Chat GPT