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OpenAI has taken the first formal step toward a stock market listing, announcing that it has confidentially submitted a draft S-1 filing to the U.S. Securities and Exchange Commission (SEC) for a potential initial public offering (IPO).

The company disclosed the filing in a short blog post on June 8, saying: “We recently submitted a confidential S-1. We expect it to leak so we’re just announcing it.”

OpenAI did not provide details about the size of the offering, the number of shares, or a listing date. “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,” it said. However, it added that the filing “gives us the option to go public sooner if that ends up being best.”

Part of a larger AI IPO race: The move comes as competition among leading AI firms intensifies. Just a week earlier, Anthropic, the maker of Claude, confidentially filed for a U.S. IPO after raising $65 billion in a funding round that valued the company at $965 billion. The company said the filing “gives us the option to go public after the SEC completes its review.” Anthropic, founded by former OpenAI employees in 2021, has emerged as one of OpenAI’s biggest rivals in the race to build advanced AI models.

Meanwhile, SpaceX is pursuing its own public listing, while AI search startup Perplexity has said it plans to launch an IPO in 2028, regardless of when OpenAI or Anthropic enters the public markets. Together, the filings underscore growing investor interest in AI companies that are seeking large amounts of capital to fund increasingly expensive computing infrastructure.

Rapid growth, but profitability remains distant: Earlier this year, OpenAI raised $110 billion at an $840 billion valuation. It also disclosed that ChatGPT had more than 900 million weekly active users and over 50 million paying consumer subscribers. In March, OpenAI said it was generating about $2 billion in monthly revenue.

At the same time, the company continues to spend heavily on AI development and infrastructure. According to reports cited by Reuters, OpenAI has told investors it does not expect to become profitable until 2030.

Corporate changes ahead of listing: The filing also follows major changes to OpenAI’s corporate structure and partnerships. The company has been working to shift toward a public benefit corporation model and recently renegotiated key terms of its relationship with Microsoft, one of its earliest and largest backers.

A legal challenge that had clouded OpenAI’s future was also resolved recently. In May, a U.S. jury ruled against Elon Musk in his lawsuit accusing the company of abandoning its original mission as a nonprofit research organisation. The verdict removed a significant legal hurdle ahead of a public offering.

For now, OpenAI’s filing does not guarantee an IPO. But by submitting the draft prospectus, the company has formally opened the door to joining a growing list of AI firms preparing to test investor appetite for one of the technology industry’s fastest-growing and most capital-intensive sectors.

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