No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - ChatGPT developer OpenAI announced on Monday that it has filed confidential paperwork for an initial public offering, paving the way for one of the most closely watched market debuts in years.
OpenAI said it has not yet decided on timing, noting that the process may take time because "there are things we want to do that are likely easier as a private company". OpenAI was valued at $852bn in March.
The move comes days after rival Anthropic also filed confidentially for an IPO, having last been valued at $965bn.
OpenAI's filing follows a legal win for chief executive Sam Altman and president Greg Brockman, after a California jury ruled that Elon Musk's lawsuit against the pair was filed outside the statute of limitations. Musk has said he will appeal, calling the verdict a "calendar technicality".
The IPO could deliver a significant windfall for Microsoft, one of OpenAI's largest backers, after companies amended their partnership last October, allowing OpenAI to transition fully to a forprofit structure. Under that deal, Microsoft received 27% of OpenAI Group PBC, valued at $135bn, while the non-profit arm received a $130bn stake.
Reporting by Iain Gilbert at Sharecast.com
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.