OpenAI targets September IPO following court victory over Musk

OpenAI is advancing preparations for an initial public offering, with chief executive Sam Altman targeting a launch by September. The move follows a recent court ruling against co-founder Elon Musk, which resolved a legal dispute that had previously threatened the company’s non-profit structure and financial stability.

Sources told the Wall Street Journal that the artificial intelligence firm is ready to proceed with the listing. The company has engaged investment banks Goldman Sachs and Morgan Stanley to facilitate the process, with confidential IPO paperwork expected to be filed with regulators within days or weeks.

The potential listing coincides with anticipated disclosures from SpaceX, Musk’s rocket company, which is expected to publicly reveal its own IPO filings as soon as Wednesday. This timing sets the stage for a direct comparison between two major market debuts, with both companies vying for attention as blockbuster offerings.

The legal context for OpenAI’s accelerated timeline stems from a lawsuit filed by Musk that sought to challenge the organisation’s leadership and governance. A judge recently ruled against Musk, removing a significant threat to the company’s operations and allowing Altman to focus on the public market transition.

Musk’s influence in the AI sector has shifted since he co-founded OpenAI. His rocket company, SpaceX, has emerged as a major competitor to OpenAI following its acquisition of xAI, another model maker founded by Musk. The competitive landscape is now defined by these rival entities rather than the internal conflicts that previously characterised their relationship.

Market observers are anticipating a significant valuation for OpenAI, though specific terms have not been disclosed. The company has not immediately responded to requests for comment regarding the filing timeline or the September target date.