OpenAI Plans Q4 IPO, Valuation Could Reach $830 Billion

OpenAI, the developer behind ChatGPT, is reportedly preparing for an initial public offering (IPO) in the fourth quarter of this year.

The Wall Street Journal (WSJ) reported on the 29th (local time) that OpenAI has begun preliminary preparations for a fourth-quarter listing, including holding informal talks with Wall Street banks in the United States, expanding its finance team, and recruiting a Chief Accounting Officer (CAO) and a Chief Business and Finance Officer (CBFO), according to sources.

OpenAI is currently valued at around 500 billion dollars. However, the WSJ noted that it may not be easy for OpenAI to achieve a successful listing by the end of the year. The company has recently made some changes to its management team. In addition, it is engaged in fierce competition with Google in the consumer business sector. Recently, OpenAI declared a "code red" response, dedicating several weeks to improving the quality of ChatGPT. The company is also facing an upcoming trial due to a lawsuit filed by its co-founder, Elon Musk, CEO of Tesla.

Nevertheless, if the IPO proceeds, it is expected to help restore market confidence in OpenAI's financial soundness. Investors have raised questions about how the company will handle the hundreds of billions of dollars in future investments required for artificial intelligence (AI) infrastructure and semiconductor (chip) costs over the coming years.

OpenAI is currently seeking to raise more than 100 billion dollars in large-scale funding. According to the WSJ, this could be part of a "pre-IPO equity investment" process. In this round, Japan's SoftBank is considering investing 30 billion dollars. Amazon is reportedly negotiating with OpenAI to contribute about half of the targeted amount, which would be 50 billion dollars.

If the funding round is successful, OpenAI's valuation is expected to soar to 830 billion dollars.

It has been reported that competitive pressure from Anthropic, a rival company, is also a factor behind OpenAI's push for a public offering. Sources explained to the WSJ that OpenAI's management has been concerned that Anthropic might go public before them.

Sam Altman, CEO of OpenAI, said in a podcast last month, "If you ask me personally whether I would like to be the CEO of a public company, my answer would be '0%,'" adding, "While there are some aspects to look forward to if OpenAI becomes a public company, on the other hand, it would also be extremely frustrating."