OpenAI files confidential Form S-1 for IPO as valuation gap with Anthropic widens
The company has reduced its projected compute infrastructure spending to $600 billion by 2030, while reports suggest internal caution regarding the fast-tracked public listing.
OpenAI has taken a significant step toward becoming a publicly traded company by confidentially submitting a Form S-1 with the US Securities and Exchange Commission. The filing marks the preliminary stage of an initial public offering that has been anticipated by markets for months. The move follows a similar submission by rival Anthropic on 1 June, intensifying the competitive landscape for capital in the artificial intelligence sector.
The confidential nature of the filing means that specific financial details, including executive compensation figures, potential business risks, and detailed revenue projections, remain undisclosed to the public. OpenAI did not provide a target date for the offering or an expected price range. The company has been preparing for a public debut for several months, navigating a complex environment where investor scrutiny on profitability and growth metrics is increasingly stringent.
Financial expectations within the company appear to have shifted significantly in recent months. OpenAI initially projected that it would spend $1.4 trillion on compute infrastructure, a figure that drew public attention and defensive responses from chief executive Sam Altman. However, the company recently revised this outlook, informing investors that it plans to spend $600 billion on compute infrastructure by 2030. This substantial reduction in capital expenditure estimates suggests a recalibration of long-term financial commitments.
Despite the progress toward an IPO, reports indicate internal disagreement regarding the timing and strategy of the listing. Chief financial officer Sarah Friar has reportedly expressed less enthusiasm for the fast-tracked offering compared to Altman. Concerns cited include missed revenue targets, slower-than-expected user growth, and apprehension about the company’s ability to meet its compute spending commitments. These internal dynamics highlight the pressures facing the company as it seeks to justify its valuation to public market investors.
The valuation context for OpenAI’s listing is challenging. Anthropic was recently valued at $965 billion following its most recent fundraise, surpassing OpenAI’s latest post-money valuation of $852 billion. The IPO race is also unfolding against the backdrop of other major market events, including the recent verdict in the Musk v. Altman trial and SpaceX’s planned public debut on 12 June. SpaceX’s offering, which aims to raise $80 billion, is expected to become the largest IPO in history and will likely serve as a benchmark for OpenAI’s own market entry.
The competitive interplay between these entities is further complicated by recent corporate developments. SpaceX has acquired OpenAI competitor xAI and entered into a deal with Anthropic, under which Anthropic pays $15 billion annually to use SpaceX data centres. These structural shifts in the AI infrastructure market add another layer of complexity to the valuation narratives surrounding OpenAI, Anthropic, and their associated ventures.
As OpenAI moves forward with its regulatory filings, the market will be closely watching how the company articulates its financial strategy and growth prospects. The upcoming SpaceX IPO will provide a immediate reference point for investor sentiment toward high-growth technology firms, while the ongoing rivalry with Anthropic continues to drive valuation comparisons. The final details of OpenAI’s offering, including pricing and timing, will likely emerge as the confidential filing process advances.
