OpenAI Moves Toward Confidential IPO Filing Targeting $850 Billion Valuation

OpenAI, the developer of ChatGPT, has been evaluating a public offering for months. Private investors have valued the company at more than $850 billion, making it one of the largest tech valuations ever. The firm is working with Goldman Sachs and Morgan Stanley to prepare the registration statement, which will be submitted to the SEC under confidential rules that allow drafts to be reviewed before public release. The company has said it remains committed to advancing its AI research while exploring financing options that support long-term growth.

- OpenAI plans to file the draft prospectus on or before May 22. - The company’s private-market valuation exceeds $850 billion. - An OpenAI spokesperson said the firm regularly reviews strategic options and remains focused on execution. - The filing comes less than two days after a jury dismissed a lawsuit by Elon Musk alleging misuse of nonprofit status. - SpaceX, also led by Musk, is preparing a confidential prospectus filing as early as Wednesday, with a private valuation of $1.25 trillion.

A confidential IPO filing lets OpenAI gauge investor interest while keeping detailed financials private until the roadshow begins. If the prospectus is accepted, the company could launch a public offering later this year, potentially in September, which would rank among the biggest listings in history. Analysts note that a successful debut could provide OpenAI with additional capital to fund large-scale model training and infrastructure expansion. The simultaneous moves by SpaceX suggest a broader trend of high-valued private tech firms testing public markets amid strong investor appetite for AI and aerospace ventures. Regulators will review the draft for completeness, and any comments could adjust the timing or size of the eventual offering.

Investors will monitor the SEC’s feedback on the draft prospectus and any updates on OpenAI’s intended pricing range and use of proceeds, as well as SpaceX’s parallel filing progress.