OpenAI is targeting an IPO: a debut could happen as early as 2027
OpenAI's Chief Financial Officer Sarah Friar has set a target for the company's public market debut: the initial public offering (IPO) is expected in 2027. However, as the top executive emphasizes, if the current growth trajectory holds, the debut could happen even sooner. This statement, made at an internal meeting, has become one of the most concrete signals about the artificial intelligence lab's intentions.
Timeline and Strategy: IPO as a Tool, Not a Finish Line
More than two months have passed since the confidential S-1 filing was submitted to the U.S. Securities and Exchange Commission (SEC). Notably, back in June, OpenAI did not specify exact timelines and left open the possibility of remaining private. Now, the company's position has crystallized. Friar emphasizes that the share offering is merely another stage of capital raising, not an end goal. The spring funding round of $122 billion has provided the company with a sufficient financial cushion and room to maneuver, allowing it to avoid rushing events.
"An IPO is not a finish line but a milestone, just another round of fundraising. In March, we raised $122 billion, which gives us flexibility," Friar emphasized.
The company's current post-investment valuation stands at an impressive $852 billion.
Competitive Race: Anthropic Could Get There First
The situation is heating up: OpenAI's main competitor, Anthropic, has also filed a confidential application and has already held initial meetings with potential investors. The market is actively discussing the possibility of its exchange debut as early as this fall, with a potential valuation of $2 trillion. Friar urged colleagues not to view a possible leapfrog by Anthropic as a threat, noting that each company has its own pace and its own plans.
"It's quite possible that they will disclose details of their filing in the coming weeks and become a public company as early as September. That's fine; we set our own pace," she added.
Financial Metrics: Growth Is Impressive, but the Gap Remains
The revenue gap between the two AI giants remains significant. Anthropic reported preliminary revenue of $11.5 billion for the second quarter, and its annualized run rate reached $65 billion by the end of July. OpenAI, in turn, earned $6.7 billion over the same period, up 18% from the first quarter. Its annualized revenue run rate recently surpassed $40 billion.
OpenAI's momentum is impressive: revenue has grown 35% since the start of the quarter, and income from enterprise clients is up 50%. The company's services for programming and work are used by 20 million people weekly.
However, amid promises of stability, the company is seeing an exodus of top executives: Chief Revenue Officer Denise Dresser, Chief Operating Officer Brad Lightcap, and Head of Product Fidji Simo have all left the company.
My take: Announcing an IPO for 2027 is a strategic move that will allow OpenAI to strengthen its position and attract institutional investors at a more mature stage. However, the delay in going public gives Anthropic a chance to capture market attention first and set a "price ceiling" for the entire sector. Given the scale of the valuations, we are on the verge of one of the largest public offerings in the history of the technology industry.