OpenAI files for IPO, following Anthropic's confidential S-1

OpenAI took a major step toward its highly anticipated IPO on Monday, confidentially filing Form S-1 with the US Securities and Exchange Commission. This follows rival Anthropic's similar confidential filing on June 1. The two AI giants have been competing in the IPO race for nearly a year, with Anthropic now holding the title of the world's most valuable startup at a post-money valuation of $965 billion, eclipsing OpenAI's $852 billion valuation. The confidential filing means key details like executive compensation and financial risks remain under wraps for now.

Internal dynamics at OpenAI reveal tension between CEO Sam Altman and CFO Sarah Friar over the fast-tracked IPO timeline, reportedly due to missed revenue targets and user growth numbers. Additionally, concerns about covering massive compute spending commitments persist — OpenAI initially planned $1.4 trillion in compute infrastructure but later adjusted to $600 billion by 2030. The IPO news follows the Musk v. Altman trial verdict and comes just ahead of SpaceX's planned June 12 IPO, which aims to raise $80 billion and become the largest IPO ever. SpaceX, which acquired OpenAI competitor xAI and signed a $15 billion annual data center deal with Anthropic, will set a benchmark for OpenAI's public debut.