Russ Mould, investment director at AJ Bell, said: “Having been beaten to the stock market starting line by Claude-owner Anthropic, the company which lit the touch paper on the whole AI theme with the launch of ChatGPT has filed for its own listing.
“OpenAI’s plans for a 2026 IPO were one of the worst kept secrets on Wall Street, but it is still a significant moment to see the business formally start the process of becoming a public company.
“Reportedly seeking a valuation upwards of $1 trillion, the listing looks set to provide a useful barometer of market sentiment. It will also test investors’ willingness to back businesses like OpenAI which are chalking up huge losses as they invest heavily in data centres and other infrastructure. When the prospectus is published, expect scrutiny to be applied to the details of OpenAI’s financial position.
“A recent wobble in AI-related stocks offered a reminder there’s no guarantee that appetite for all things artificial intelligence will be as strong when OpenAI goes public – which is likely to be in the autumn – as it is today.
“The path to joining the market was helped by the decision of a California court to throw out a case brought against the company by Elon Musk, in which it had been argued OpenAI had betrayed its original not-for-profit mission. But that might not be the last hurdle for the company to clear as it looks to make a successful market debut.”
Contact details are available to account holders.
Create a free account to get in touch with this expert.