OpenAI on Monday took a preliminary step in the IPO race that it and rival Anthropic have been competing in for most of the year. The company announced it has confidentially submitted a Form S-1 with the US Securities and Exchange Commission, following Anthropic's decision to do the same on June 1st.
Confidential Filing Details
The confidential filing means that certain details normally available through the form—such as executive compensation figures, potential risks to the company's business, and more financials—are not yet public. As of Anthropic's most recent fundraise, it is being called the world's most valuable startup, with a post-money valuation of $965 billion, surpassing OpenAI's latest $852 billion post-money valuation.
Internal Disagreements Over IPO Timing
OpenAI has been preparing to go public for months, but reports have surfaced that certain executives, namely CFO Sarah Friar, have not been as enthusiastic about the fast-tracked IPO as CEO Sam Altman. Concerns include missed revenue targets, user growth numbers, and doubts about OpenAI's ability to pay for all its compute spending commitments. The company had initially planned to spend $1.4 trillion on compute infrastructure, a figure Altman became defensive about when publicly questioned. In February, OpenAI adjusted that figure, telling investors it plans to spend $600 billion on compute by 2030.
Context of Musk vs. Altman Trial and SpaceX IPO
The news comes weeks after the jury reached a verdict in the high-profile Musk v. Altman trial, and ahead of Musk-owned SpaceX's planned June 12 IPO. SpaceX's public debut is set to raise $80 billion, making it the biggest IPO of all time. OpenAI's own debut will be closely compared to SpaceX's, especially since SpaceX acquired OpenAI competitor xAI and signed a deal with Anthropic, with Anthropic paying $15 billion a year to use SpaceX data centers.
