OpenAI files confidential IPO request amid rising AI competition

OpenAI has submitted a confidential S‑1 registration statement to the U.S. Securities and Exchange Commission, indicating that it is preparing for an initial public offering that could occur as early as the fall, with the company aiming for a valuation in the vicinity of $1 billion. The filing states the firm expected the information to leak and therefore disclosed it publicly.

The move follows a wave of AI‑focused IPO activity, most notably the rival Anthropic, which recently filed its own confidential S‑1 and is valued at roughly $965 billion after a large financing round.

In parallel, OpenAI is evaluating a substantial reduction in the price of its AI‑service tokens to keep business customers, a response to Anthropic’s aggressive market push. CEO Sam Altman has described the high operating costs as "a huge problem" for clients and said the company is actively seeking ways to deliver greater value for less money.

OpenAI reports about $2 billion in monthly revenue and roughly $1 billion in quarterly revenue, with more than 900 million weekly active users and over 50 million paid subscribers. The firm does not expect to become profitable before 2030. Ahead of a possible IPO, it plans to offer employees a tender‑offer to sell a portion of their shares.