OpenAI confidentially files for IPO after Anthropic's move

OpenAI announced Monday it has confidentially filed a draft registration statement with the U.S. Securities and Exchange Commission for an initial public offering, just over a week after its main rival Anthropic made a similar move. The company, valued at $852 billion post-money, expects a blockbuster year for tech IPOs, with SpaceX also targeting a $1.75 trillion debut. While OpenAI hasn't set a timeline, the filing positions it to go public faster if favorable. However, the company's CFO has raised internal concerns about the sustainability of massive data center spending, and secondary markets show Anthropic surging to a $1 trillion valuation, outpacing OpenAI's $880 billion mark.

Financially, OpenAI faces a steep climb. Despite raising $122 billion in the largest funding round in Silicon Valley history, the firm projects spending roughly that same amount on AI compute alone in 2028, burning $85 billion that year even after doubling sales. CFO Sarah Friar's warnings highlight that by its own projections, OpenAI won't generate more cash than it spends for at least four more years. Anthropic, by contrast, claims it is near its first quarterly profit, backed by a $65 billion funding round. The confidential IPO filing shields OpenAI from publicly disclosing detailed risks, but the underlying economics remain a central question for public market investors.