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OpenAI has taken its first formal step toward the stock market, setting up what could become one of the biggest public offerings in history.
The ChatGPT maker announced Monday that it has confidentially submitted a draft S-1 registration statement to the US Securities and Exchange Commission (SEC), beginning the process that could eventually lead to an initial public offering.
The company revealed the move in a brief statement, saying: “We recently submitted a confidential S-1.” OpenAI stressed that no final decision has been made on when it will go public.
“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. “But it’s a complicated set of tradeoffs and this gives us the option to go public sooner if that ends up being best.”
The filing gives regulators time to review the company's financial disclosures and risk factors before those documents become public.
Joining a growing AI IPO wave
OpenAI's move comes just days after rival Anthropic disclosed that it had also confidentially filed for an IPO, adding momentum to what is shaping up to be a landmark year for artificial intelligence companies entering public markets.
SpaceX, which is also pursuing an IPO, has already filed paperwork for a stock market debut. Together, the three companies are expected to test investor appetite for some of the most highly valued private technology firms ever created.
According to reports, OpenAI is targeting a valuation of up to $1 trillion, though the company has not publicly confirmed any valuation target, fundraising amount, or offering terms.
A company built on the AI boom
Founded in 2015 as a nonprofit research organization, OpenAI became one of the most influential companies in technology after releasing ChatGPT in 2022.
The chatbot's rapid adoption helped spark a broader AI boom, prompting major technology companies to invest heavily in generative AI products and infrastructure.
The company has since expanded beyond consumer chatbots, pursuing enterprise customers, government contracts, and broader AI services. OpenAI previously disclosed that ChatGPT has more than 900 million weekly active users and over 50 million subscribers.
The company has also attracted enormous investor backing. Earlier this year, OpenAI completed a funding round that valued the company at roughly $852 billion, making it one of the world's most valuable private firms.
The cost of growth
Despite its rapid revenue growth, OpenAI continues to face the enormous expense of building and operating advanced AI systems.
Industry analysts note that AI developers are spending tens of billions of dollars on computing infrastructure, data centers, and talent as competition intensifies. Reuters reported that OpenAI told investors during its most recent fundraising round that it does not expect to reach profitability until 2030.
Fortune also cited comments from EMARKETER analyst Nate Elliott, who described the filing as coming at a “precarious moment” for the company amid growing competition from rivals including Anthropic and Google.
“But OpenAI doesn’t have a lot of other places to look for the enormous capital required to support its costs,” Elliott said.
Legal and structural questions remain
OpenAI's path toward a public listing has also been shaped by legal and governance challenges.
The company was originally established as a nonprofit before creating a for-profit subsidiary in 2019 to raise larger amounts of capital for AI development. More recently, it reorganized into a public benefit corporation while remaining under nonprofit oversight.
A major obstacle was removed last month when a jury ruled against Elon Musk in his lawsuit accusing OpenAI of abandoning its original nonprofit mission. The verdict cleared what analysts viewed as a significant legal hurdle ahead of a potential public offering.
However, OpenAI's unique structure and governance model are still expected to receive close scrutiny from regulators and future investors as the SEC review process unfolds.
What happens next
For now, OpenAI's IPO remains in the preparation stage. The confidential filing allows the company to work with regulators behind closed doors while delaying the public release of detailed financial information.
The company emphasized that its announcement was made under Rule 135 of the Securities Act and “does not constitute an offer to sell or the solicitation of an offer to buy any securities.”
Also read: OpenAI is reportedly bringing ChatGPT, Codex, and Atlas together in a desktop superapp for professional and enterprise users.