Artificial intelligence company OpenAI plans to become a public company in 2027, Chief Financial Officer Sarah Friar told staff during an internal meeting.
Friar stated that the initial public offering could take place earlier if the firm's financial performance proceeds above expectations. She told employees that executive leadership views the stock market listing as a new financing stage and an important milestone for the organization.
OpenAI took a major regulatory step in June by confidentially submitting its IPO prospectus to the US Securities and Exchange Commission. However, the artificial intelligence developer has not yet publicly announced the exact date when its shares will begin trading on the stock exchange.
The company is navigating the process without immediate pressure to launch a float after raising $122 billion in investment in March. That substantial capital injection has allowed OpenAI to progress with its corporate plans without having to rush its market debut.
Financial growth and market valuation
Ahead of any stock market launch, OpenAI needs to support its current valuation of $852 billion. Potential investors are expected to seek more detailed disclosures regarding the company's financial structure and revenue performance as the float approaches.
According to investor data reported by The Wall Street Journal, OpenAI generated $6.7 billion in revenue during the second quarter. That represented an 18 percent increase compared to the first quarter, bringing the company's annualized revenue to more than $40 billion.
Competitor filings and market timing
OpenAI's primary rival, Anthropic, has also filed confidentially with the Securities and Exchange Commission for an initial public offering. Reports indicate that Anthropic is holding discussions with potential investors ahead of its planned stock market listing.
Friar informed staff that Anthropic going public before OpenAI is not a source of concern for the company. She noted that there is a possibility Anthropic could enter the stock exchange as early as September. Anthropic previously reported an annualized revenue exceeding $60 billion.
