OpenAI files confidential S-1 for public listing amid profitability questions
Company cites strategic benefits of remaining private while preparing for potential public offering, with annualised revenue reaching $25 billion but projected costs soaring to $115 billion through 2029.
OpenAI has confidentially submitted a Form S-1 with the US Securities and Exchange Commission, formally signalling its intention to pursue an initial public offering. The company announced the filing on Monday, stating it preemptively disclosed the submission because it expected the confidential paperwork to leak. This move comes exactly one week after rival artificial intelligence firm Anthropic announced its own plans to go public.
The filing does not include a specific date or offer price for the listing. OpenAI indicated that the timing of the IPO remains undecided, noting that remaining private currently offers strategic advantages for certain operations. The company stated on its website that while it has not set a timeline, the submitted paperwork provides the option to proceed to public markets sooner if deemed appropriate.
"We expect it to leak so we're just announcing it," the company wrote. "We have not decided on timing yet; it may be a while because there are things we want to do that are likely easier as a private company. But it's a complicated set of tradeoffs and this gives us the option to go public sooner if that ends up being best."
Financial disclosures reveal a complex picture for the AI developer. Recent reporting from The Information indicates that OpenAI recorded $25 billion in annualised revenue as of the end of February. This follows last year’s disclosures, which showed revenue from subscriptions, advertisements, and service fees growing to between $10 billion and $20 billion, albeit accompanied by significant losses due to high cloud computing and staffing costs.
Despite the revenue growth, the path to profitability faces substantial hurdles. OpenAI is projected to burn up to $115 billion through 2029 to cover compute costs and other expenses. The company has previously revised its long-term infrastructure spending outlook, reducing its projection from $1.4 trillion to $600 billion by 2030. The SEC will now assess the company’s accounting practices and disclosures of potential risks during the regulatory review process.
